Document background
The Preference Share Agreement is a crucial document used when a company wishes to raise capital while maintaining existing control structures. Governed by Hong Kong law, particularly the Companies Ordinance (Cap. 622), this agreement defines the specific rights, preferences, and restrictions attached to preference shares being issued. It is commonly used in investment rounds, corporate restructuring, or when companies need to attract investors with guaranteed returns or priority rights. The document typically includes detailed provisions on dividend rights, voting powers, redemption mechanisms, and liquidation preferences, making it essential for both the issuing company and investors to understand their respective rights and obligations. The agreement must comply with Hong Kong's regulatory framework while accommodating the commercial needs of all parties involved.
