Percentage dilution occurs when an existing shareholder does not purchase the number of newly issued shares needed to maintain their current ownership proportionately (for example. B, if a shareholder currently owns 10% of the shares of a company, he must acquire 10% of the newly issued shares to retain his relative ownership). In accordance with Section 43 of the Companies Act 2013, there are two types of shares that a company issues to potential shareholders. The shares are the shares (as shown in point 43 (a) above) and the others are preferred shares (as shown in point 43 (b) above). Both actions have their own advantages and restrictions. In short, the former gives a shareholder the right to attend meetings and vote in any decision submitted to the company that we often refer to as voting rights, while the latter gives the shareholder the right to receive dividends from the company and not to obtain voting rights, except in some cases. On the other hand, the shareholders` pact defines the relationship between shareholders, defines the terms of the company`s participation and is not directly related to the investment process itself. The shareholder contract is a contract signed by a company`s shareholders and generally contains details such as restrictions on the transfer of shares, drag-Along/tag Along clauses, non-compete clauses, share issuance, termination of shareholder contracts and employment issues. Therefore, we can say that an equity subscription contract is a formal agreement that contains the investor`s investment terms in the business and binds the two parties in this investment process. Thus, minority shareholders` savings rights protect by giving them the right, but not the obligation to sell shares with a majority or a stronger shareholder. This protects minority shareholders from being forced to accept a deal on lower terms or to remain a shareholder in the company after a majority sale. This is an agreement between the two parties regarding the transfer of shares from seller to buyer For a legally binding agreement, the first criteria that must be met are offer and acceptance. For example, a company A wants to invest something and, to that end, invites investors to invest in the company.

B an investor who wants to invest in Company A brings 100 kronor and, in return, Company A B offers a certain number of shares corresponding to the amount of the investment. B thus becomes the owner of Company A to a certain extent. As we can see, there was an offer of A that was duly accepted by B, which is an agreement between these two. 1) Sellers have the right and right to sell shares on the terms and conditions set out in the agreement. To be clear, the right of the first refusal applies to the right to acquire existing shares of another shareholder (unlike pre-emption rights which constitute a form of protection against dilution that gives a shareholder the right to retain a proportionate interest in future shares). You can see an example-sharing subscription agreement from here to better understand. There are also some risks associated with implementing a shareholder agreement in some countries.