Document background
The Preference Share Agreement is a vital instrument in New Zealand corporate finance, used when companies seek to raise capital while offering investors preferential rights without necessarily diluting existing voting control. This document type is particularly relevant when companies need to attract significant investment while maintaining existing management control, or when implementing structured finance solutions. The agreement must comply with the New Zealand Companies Act 1993 and Financial Markets Conduct Act 2013, among other relevant legislation. It typically includes detailed provisions on dividend rights, capital rights, voting rights, redemption terms, and any conversion privileges. The Preference Share Agreement is commonly used in various scenarios including growth capital raises, restructuring situations, and strategic investments, offering flexibility in terms of investor rights and company obligations while providing a clear framework for both parties' expectations and obligations.
