Document background
The Business Investment Contract serves as a crucial legal framework for structuring and documenting investment relationships in New Zealand's business environment. This document is essential when companies or individuals seek to make or receive significant business investments, whether through equity, debt, or hybrid instruments. It addresses key aspects such as investment terms, ownership rights, governance structures, and exit mechanisms, while ensuring compliance with New Zealand's regulatory requirements, including the Financial Markets Conduct Act 2013 and Companies Act 1993. The contract is particularly important for protecting both investors' and investee companies' interests, establishing clear operational guidelines, and providing mechanisms for dispute resolution and exit strategies. It can be adapted for various investment sizes and structures, from venture capital and private equity investments to strategic corporate investments.
