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An Option Deed – also known as a Call Option Agreement – is a legal instrument used in New Zealand when you’re granting a party the rights to, at their discretion, purchase shares in a company.
It’s a legal agreement where one party provides the right to another party to acquire a specific number of shares at a predetermined price. These shares can be either newly issued by the company or existing shares sold by a current shareholder.
In New Zealand, option deeds, also referred to as option agreements, typically include an expiry date. This ensures that if the option is not exercised by a specified date, the right to purchase the shares at the agreed price expires.
Option agreements can be an effective tool to attract potential investors or to provide incentives to existing shareholders in New Zealand.
What’s Included In An Option Deed?
An Option Deed should detail aspects such as:
- The timeframe within which the option can be exercised
- Conditions that may need to be met before the shares can be acquired, such as performance milestones
Where Can I Get An Option Agreement?
As with any legal document, an option agreement should be drafted by a legal professional to ensure it is compliant with New Zealand law and to facilitate a clear process in the event of a dispute.
At Sprintlaw, we offer an Option Deed package tailored to New Zealand’s legal environment, which includes:
- A customised Option Deed for your business
- Consultations with a Sprintlaw lawyer experienced in New Zealand law
- Transparent, fixed-fee pricing
Why Sprintlaw?
It’s crucial to consult with a lawyer knowledgeable in New Zealand corporate law before drafting an option agreement to ensure it accurately reflects your business’ circumstances. Additionally, a lawyer can advise on any related legal documents – such as Shareholders Agreements – that may need to be revised in conjunction with the option agreement.
At Sprintlaw, we specialise in option agreements, capital raising, drafting Shareholders Agreements, and providing advice on a range of corporate and commercial legal matters specific to New Zealand.
Feel free to reach out to our approachable team at [email protected] or call us on 0800 002 184 for a free, no-obligation chat.
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