Document background
The Stock Subscription Agreement is a fundamental document used in Nigerian corporate transactions when a company issues new shares to investors. This agreement, essential for both private and public companies operating under Nigerian law, particularly the Companies and Allied Matters Act (CAMA) 2020, details the terms under which an investor subscribes to new shares in a company. It's commonly used in various scenarios including initial capital raises, subsequent funding rounds, and strategic investments. The document typically includes detailed provisions on share price, payment terms, representations and warranties, conditions precedent, and completion mechanics. It must comply with Nigerian regulatory requirements, including those set by the Corporate Affairs Commission and, where applicable, the Securities and Exchange Commission. The agreement serves as a crucial tool for documenting the rights and obligations of both the issuing company and the subscriber, while ensuring proper corporate governance and regulatory compliance in the Nigerian business context.
