About this Document:
An underwriting agreement is a statutory necessity for Companies, deciding on raising their share capital through issue of equity shares and offering the same to general public for subscription. It is mandatory for the Company to file this agreement with the prospectus of public issue of shares/debentures to the Registrar of Companies.
It is an agreement between the Company and the underwriter, whereby the Company agrees to allot the number of shares to the underwriter, as agreed to be underwritten by him and the underwriter undertakes to subscribe to the securities of the Company when the existing shareholders of the Company or the public do not subscribe to the Securities offered to them;
Our document complies with all the necessary regulations under the law. The details have been provided in the explanatory notes that accompany the document. The document is invaluable in comparison to the price quoted here.
Who will use this document?
A Public Limited Company arranging terms with an Underwriter who is eligible under the SEBI Act, 1992;
A Share broking / Merchant Banking / Underwriting firm/company in an arrangement for subscription to the public issue of a Public Limited Company;
Key features:
· Comprehensive provisions to comply with Company law regulations;
· Real law in plain and simple user friendly language;
· Detailed explanatory notes make it easier to understand the legalities involved;
· Appropriate legal provisions, warranties and exclusions;
· Essential ingredients of an Underwriting Agreement included as per law and defined in the notes for user convenience;
· Protects the interests of both the parties.
This document includes provisions for:
· Warranties and representations of Company and Underwriter;
· Commission and payment terms;
· Allotment of shares;
· Sub-underwriting;
· Schedule of compliance;
· Duration and termination;
· Time as essence;
· Dispute Resolution;
· Jurisdiction.
