Document background
The Share Distribution Agreement is a critical document used when a company seeks to establish formal arrangements for the distribution of its shares through authorized partners or financial institutions in Germany. This agreement is essential for companies looking to expand their shareholder base or raise capital through share offerings while ensuring compliance with German regulatory requirements, particularly the Securities Trading Act (WpHG) and Stock Corporation Act (AktG). The document typically includes detailed provisions on distribution rights, territorial restrictions, commission structures, compliance obligations, and reporting requirements. It's particularly relevant in scenarios involving public offerings, private placements, or when establishing ongoing distribution relationships with financial intermediaries. The agreement must carefully balance commercial objectives with regulatory compliance, making it a key instrument in corporate finance and securities distribution.
