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Stock Agreement
I need a stock agreement for a private company issuing shares to a new investor, outlining the terms of the stock purchase, including the number of shares, price per share, and any restrictions on transfer. The agreement should comply with Swiss corporate law and include provisions for shareholder rights and obligations.
What is a Stock Agreement?
A Stock Agreement lays out the key terms and conditions for buying, selling, or transferring shares in a Swiss company. It protects both the company and its shareholders by setting clear rules about share ownership, voting rights, and transfer restrictions in line with Swiss Code of Obligations requirements.
These agreements play a vital role in Swiss startups and family businesses, where controlling who owns shares is crucial. They typically include provisions for first refusal rights, share valuation methods, and what happens when shareholders exit or new investors come in. Good stock agreements help prevent disputes and maintain stable company ownership while respecting Swiss corporate governance standards.
When should you use a Stock Agreement?
Stock Agreements become essential when founding a Swiss company or bringing in new shareholders. They're particularly important for startups raising capital, family businesses planning succession, or companies wanting to protect themselves from unwanted share transfers. The right time to create one is before any shares change hands.
A Stock Agreement proves invaluable during major company changes: when selling shares to investors, establishing employee stock options, or setting up share transfer rules. It helps prevent future disputes by clearly defining shareholder rights and obligations upfront. Swiss companies often implement these agreements during funding rounds or when restructuring ownership to ensure compliance with local regulations.
What are the different types of Stock Agreement?
- Share Sale And Purchase Agreement: Used for transferring existing shares between parties, setting price and payment terms
- Stock Subscription Agreement: For issuing new shares, often used in funding rounds
- Common Stock Purchase Agreement: Specifically for common stock transactions, popular with smaller private companies
- Stock Repurchase Agreement: Enables company buyback of shares from departing shareholders
- Founder Stock Purchase Agreement: Tailored for initial share distribution among company founders
Who should typically use a Stock Agreement?
- Company Founders: Draft and sign Stock Agreements during company formation to establish initial share distribution and ownership rules
- Corporate Lawyers: Prepare and review agreements to ensure compliance with Swiss corporate law and protect client interests
- Board Members: Approve and oversee share transfers, often serving as key signatories on Stock Agreements
- Investors: Negotiate and sign agreements when purchasing company shares, particularly during funding rounds
- Company Secretary: Maintains stock records and ensures proper documentation of share transfers under the agreement
- External Auditors: Review agreements as part of their annual compliance checks under Swiss regulations
How do you write a Stock Agreement?
- Company Details: Gather current shareholder registry, articles of association, and existing share certificates
- Party Information: Collect full legal names, addresses, and identification details of all involved shareholders
- Share Specifics: Document number of shares, share classes, and current ownership percentages
- Transfer Terms: Define price, payment conditions, and any transfer restrictions
- Voting Rights: Outline shareholder voting procedures and majority requirements
- Exit Provisions: Specify conditions for share sales, pre-emptive rights, and tag-along rights
- Digital Platform: Use our automated system to generate a compliant Swiss Stock Agreement, ensuring all essential elements are included
What should be included in a Stock Agreement?
- Party Identification: Full legal names and addresses of all shareholders and the company
- Share Details: Precise description of share types, quantities, and nominal values
- Transfer Provisions: Rules for selling or transferring shares, including pre-emptive rights
- Valuation Method: Clear formula or process for determining share value
- Voting Rights: Detailed procedures for shareholder voting and decision-making
- Dispute Resolution: Swiss arbitration or court jurisdiction specifications
- Exit Mechanisms: Procedures for shareholder departure or company sale
- Governing Law: Explicit reference to Swiss Code of Obligations
- Compliance Statement: Confirmation of adherence to Swiss corporate regulations
What's the difference between a Stock Agreement and a Stock Option Agreement?
A Stock Agreement differs significantly from a Stock Option Agreement in several key ways. While both deal with company shares, they serve distinct purposes under Swiss law. Stock Agreements govern immediate share ownership and transfers, while Stock Option Agreements create future rights to purchase shares.
- Timing of Ownership: Stock Agreements transfer immediate ownership rights, while options only grant the right to buy shares at a later date
- Legal Obligations: Stock Agreements create immediate shareholder rights and duties under Swiss corporate law; option holders don't have shareholder status until exercise
- Price Mechanics: Stock Agreements typically specify current market value, while option agreements set future exercise prices
- Common Usage: Stock Agreements are used for immediate share transfers between parties; option agreements are often used for employee incentive programs
- Documentation Requirements: Stock Agreements need immediate entry in the share register; options require additional exercise documentation when executed
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