Preference shares are used because an investor wants downside protection. The commercial discussion focuses on the amount and the valuation.
The rights attaching to the shares — dividend priority, liquidation preference, conversion, redemption, voting — are what actually determine returns, and they need to be in the constitution as well as the agreement.
Preference Share Subscription Agreement
Documentation issuing preference shares — the subscription terms, the rights attaching to the class, dividend and liquidation priority, conversion and redemption mechanics, voting, and the constitutional amendments required to create the class.
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Picture a preference share class properly created in the constitution, with rights that are unambiguous and a conversion mechanism that works when triggered.
Who this service is for
This Is For You If…
Companies issuing preference shares to an investor
Investors subscribing for preference shares
Businesses creating a new share class ahead of a round
Groups restructuring existing share classes
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What we will do for you
This is what we will do for you
Advise on the rights the class should carry and their commercial effect
Amend the constitution to create the class properly
Draft the subscription agreement and completion conditions
Set conversion, redemption and priority mechanics
What’s Included
What’s Included in our service for you
Advice on class rights and commercial effect
Constitutional amendment creating the class
Subscription agreement and completion conditions
Conversion, redemption and priority mechanics
Allotment, filings and register updates
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Why Choose Legal That Works?
Why Choose Us To Assist You?
Digital-first
No office visit required—review and sign online
Transparent fees
Fixed price, no billing surprises
Deep experience
Various contracts across industries
Accessible
Our client portal keeps you informed
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Important: Limited Slots
Preference rights must be properly created in the constitution. Rights recorded only in an agreement can prove difficult to enforce against the company.
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Nothing to Lose. Everything to Protect.
No Surprises. No Guesswork. Just Legal That Works.
Before anything starts, we speak with you to understand your business and make sure the service is the right fit. If it is not, we will say so upfront. No pressure. No wasted time. We only take on matters we are confident we can deliver with quality. That is why business owners trust us to get it right.
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Frequently Asked Questions
What is Legal That Works?
Legal That Works is a business and organisation oriented legal service designed by Messrs Akmal Saufi & Co (the firm that has brought the widely known legal consumer services brand ASCOLAW). We specifically help business owners and organisation leadership to navigate Malaysia’s legal terrain to achieve their commercial goal.
What if I’m not sure what legal service I need?
No problem. Most business owners aren’t legal experts! Just reach out. Our team will guide you to the right service or help you understand your options—without jargon or upselling.
What is a liquidation preference?
A right to be paid first on an exit, up to a defined amount. It can substantially change what ordinary shareholders receive.
Are preference shares debt or equity?
Equity, though redeemable preference shares have debt-like features. The classification matters for accounting and tax.
Do preference shareholders vote?
Whatever the class rights say. It should be a deliberate decision, not an omission.
Who will be helping me?
All our services are delivered by our licensed lawyers under the Malaysian Bar with proven experience across industries. You’ll work with a real legal team, not chatbots or generic customer support.
