Document background
The Preference Share Subscription Agreement is a crucial document in Nigerian corporate finance, used when a company wishes to raise capital by issuing preferred shares to investors while maintaining existing voting control structures. This agreement is particularly important in the Nigerian market where companies seek to balance the need for growth capital with maintaining strategic control. The document must comply with the Companies and Allied Matters Act (CAMA) 2020 and other relevant Nigerian regulations, making it essential for both domestic and foreign investments. It typically includes detailed provisions on share rights, dividend preferences, exit rights, and investor protections, while also addressing specific requirements for foreign investors under Nigerian investment laws. This type of agreement is commonly used in growth stage financing, strategic investments, and corporate restructuring scenarios.
