International tax treaties focus on the elimination of double taxation, but can, at the same time, treat relatives as the prevention of tax evasion. As part of its missions, the United Nations Conference on Trade and Development has published the Sustainable Development Investment Policy Framework (IPFSD), a dynamic document that was created to help governments develop sound investment policies, including international investment agreements, that use foreign direct investment (FDI) for sustainable development. IPFSD intends to promote a new generation of investment agreements by pursuing a broader development agenda; and policy makers in formulating their national and international investment policies. To this end, the IPFSD identifies eleven key critical principles. As part of these fundamental principles, IPFSD provides states with guidance and advice on formulating a good investment policy, including clause options for negotiators, to increase the value of the national investment policy for sustainable development. Among the many contracts and agreements that are available for all sizes and development, investment agreements and shareholder agreements remain two of the most useful, as they accelerate the process of transformation of the exercise or lack of proper power by shareholders and, more importantly, set the investment conditions for new partners. While an investment agreement establishes a contract for people wishing to acquire owners in a company, a shareholders` pact defines the rights of a new shareholder to the company. If the investment in a life sciences company is realized, with the exception of IP guarantees, the remaining guarantees in their application will be quite limited due to the company`s limited business history. IP guarantees in life sciences investments, regardless of the phase of the business, are, in most cases, more detailed and important than others, because of the value, breadth and complexity of the IP they own or the products they want to create and/or develop.
Guarantees are likely to be even more important if a life sciences company goes through a second or second investment cycle. It is customary to have a provision under which each transferor or any new allote of shares must enter into a contract of commitment that would result in the new shareholder being treated as an original party to the investment agreement and, therefore, bound by the provisions of the agreement. There is often discretion of the House to waive this requirement and an exclusion for those exercising options. Over the lifecycle of each company, companies inevitably enter into a large number of ubiquitous agreements to implement a concept of development growth and promote the chances of success in the business market. It is essential to fully understand which agreements and contracts should be used in various negotiations, to properly apply the rights of shareholders and thus to succeed in your business.