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
<ul><li>Advise on the rights the class should carry and their commercial effect</li><li>Amend the constitution to create the class properly</li><li>Draft the subscription agreement and completion conditions</li><li>Set conversion, redemption and priority mechanics</li></ul>
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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You Need To Act Now
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 digital-first legal service designed by ASCO LAW (Messrs Akmal Saufi & Co) specifically for business owners and founders. We help you structure, grow, and protect your business through practical legal solutions—delivered fast, in plain English & Bahasa Malaysia, and with no office visit required.
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.
Are your services affordable?
Our transparent fee structure means no billing surprises. Membership unlocks the best rates, but even one-off services are designed to be clear and competitive. You’ll always know what you pay.
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.
Is everything done online?
Yes. Our service is fully digital. You can consult, review documents, sign agreements, and access your files securely from anywhere. No office visit required unless you want to meet in person. No office visit is required. If you require us to attend at your office or outside meetings, additional charges will apply.
What’s the difference between One-Off Service and Membership?
(1) One-Off Service: Pay for what you need, when you need it. Perfect for single transactions or urgent matters (2) Membership: Subscribe for ongoing access, priority support, and special pricing. Membership means you get a legal partner who truly understands your business.
