Subscription letter

A short form letter of application to subscribe for shares.

The subscription letter confirms the number of shares subscribed for, and the amount paid per share. It also authorises the company to add the subscriber's name to the company's register of members.  It refers to the consideration for the shares to be by way of cheque, banker's draft, electronic transfer or release of a debt owed by the company to the subscriber. This letter has been drafted to satisfy sections 583(2) and 583(3)(a) to (c) of the Companies Act 2006 (meaning of payment in cash).

For a short form letter of application where the consideration is by way of an undertaking to pay cash to the company at a future date, see Standard document, Subscription letter: undertaking to pay.

For a long form subscription deed to use when an employee or director subscribes for shares, including a tax indemnity and exclusion clause relating to liabilies for loss on termination, see Standard document, Employee/director subscription deed.

Note that, in a non-leveraged investment round, the investors' subscription and payment for shares will be made pursuant to an investment agreement (see Standard document, Investment agreement: non-leveraged investment).

Howard Palmer, Taylor Wessing

Request a free trial

To access this resource and thousands more, register for a free, no-obligation trial of Practical Law. Register using the button below, telephone +44 (0)20 7202 1220 or e-mail info@practicallaw.com.

A free trial will give you:

Unlimited access to Practical Law online know-how
Thousands of market standard documents and clauses
Daily alerts and weekly update e-mails on key legal developments in your practice area
 

Register

Log in

To access this resource, log in below or register for free access.

Contact us

Our customer services team are available every working day 8.30am to 7pm (GMT).

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247243018006", "objName" : "Subscription letter", "userID" : "2", "objUrl" : "http://uk.practicallaw.com/cs/Satellite/resource/6-203-4849?service=corporate", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "false", "analyticsPermCookie" : "2-6a4a5eb0:145964b03f2:-c07", "analyticsSessionCookie" : "2-6a4a5eb0:145964b03f2:-c06", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }