Investors Agreement

It is a type of shareholders agreement which serves to regulate the relationships between the founding shareholders who have incorporated or are to incorporate a company and the investor who shall finance their growth. The purpose is twofold: for entrepreneurs to ensure that the investor shall meet his/her financial undertakings; and for the investor, to protect his/her investment without jeopardising the development of the project or the proper founding shareholders. When drawing up this type of document, it is very useful that there be a Shareholders Agreement for a New Company (for example, made at the time the company was incorporated) to regulate relations between same. given that many of its clauses may be transposed to the investor agreement. Some of the clauses that an Investor and Shareholders Agreement must include are as follows: capital increase; corporate management; shareholders right to information; manager remuneration; expenditure estimates; exclusivity and non-competition; conveyance of equity shareholdings (drag-along right and tag-along right (or co-sale rights)); and confidentiality. Model of Investors Agreement.