oboloo Glossary

Share Distribution Agreement

oboloo Glossary

Share Distribution Agreement

A Share Distribution Agreement is a legal document that outlines the distribution of shares in a company following a capital raising event. The Agreement ensures that everyone involved has the same understanding and expectations about how the company’s new capital will be handled. Specifically, it defines how much each investor will receive in exchange for their investment and outlines the rules surrounding their share ownership. This document also addresses such important issues as dividend payments, voting rights, transferability and other key details. A Share Distribution Agreement ensures that all parties are aware of their rights and obligations before any money changes hands.