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Non Disclosure Agreement For Investors Template for South Africa

A comprehensive Non-Disclosure Agreement tailored for investor relationships in the South African context, incorporating requirements from key legislation including POPIA, the Companies Act, and Financial Markets Act. This document establishes confidentiality obligations between companies seeking investment and potential investors, protecting sensitive business information during investment discussions while ensuring compliance with South African securities and data protection laws. The agreement includes specific provisions for handling financial data, trade secrets, intellectual property, and commercially sensitive information, with appropriate remedies under South African law.

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What is a Non Disclosure Agreement For Investors?

The Non-Disclosure Agreement For Investors is essential for companies in South Africa seeking to protect their confidential information while engaging with potential investors. This document becomes necessary when companies begin fundraising activities, enter into investment discussions, or commence due diligence processes. It ensures compliance with South African legislation, including POPIA, the Companies Act, and Financial Markets Act, while protecting sensitive business information, financial data, trade secrets, and intellectual property. The agreement is particularly crucial given South Africa's developed financial markets and the increasing presence of international investors, requiring robust protection of confidential information during investment evaluations. It typically precedes any detailed investment discussions or sharing of sensitive business information and remains active throughout the investment consideration process.

What sections should be included in a Non Disclosure Agreement For Investors?

1. Parties: Identification of the disclosing party (typically the company) and receiving party (the potential investor), including full legal names and registration details

2. Background: Context of the agreement, including the purpose of sharing confidential information for potential investment evaluation

3. Definitions: Key terms including 'Confidential Information', 'Investment Purpose', 'Representatives', 'Affiliated Companies', and other relevant definitions

4. Scope of Confidential Information: Detailed description of what constitutes confidential information under the agreement

5. Disclosure and Use of Confidential Information: Terms governing how confidential information can be used and to whom it can be disclosed

6. Protection of Confidential Information: Specific measures required to protect confidential information

7. Exclusions from Confidential Information: Information that is not considered confidential under the agreement

8. Return or Destruction of Confidential Information: Requirements for handling confidential information after discussions end or upon request

9. Duration and Survival: Term of the agreement and which obligations survive termination

10. No Grant of Rights: Clarification that sharing of information does not grant any rights to intellectual property or create obligation to invest

11. Breach and Remedies: Consequences of breaching the agreement and available remedies

12. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments

What sections are optional to include in a Non Disclosure Agreement For Investors?

1. Securities Trading Restrictions: Used when shared information could constitute inside information under financial markets regulations

2. Non-Solicitation: Include when there's a need to prevent approaching employees, clients, or suppliers

3. Data Protection Compliance: Detailed POPIA compliance section when personal information will be shared

4. Assignment and Successors: Include when dealing with institutional investors who may need to restructure or assign rights

5. Non-Circumvention: Used to prevent investors from bypassing the company to directly approach its partners or opportunities

6. Investor Syndicate Provisions: Include when multiple investors may be involved and information sharing between them needs to be regulated

7. Competing Investments: Used when the investor may have investments in competing businesses

What schedules should be included in a Non Disclosure Agreement For Investors?

1. Schedule 1: Description of Investment Opportunity: Detailed description of the business opportunity or project for which confidential information will be shared

2. Schedule 2: Authorized Representatives: List of authorized representatives from both parties who may access confidential information

3. Schedule 3: Security Protocols: Specific security measures and protocols for handling confidential information

4. Schedule 4: Disclosure Log: Template for recording what confidential information has been disclosed and to whom

5. Appendix A: Form of Confidentiality Undertaking: Template for additional parties who may need to sign confidentiality undertakings

6. Appendix B: Data Processing Terms: Detailed terms for POPIA compliance when personal information is involved

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

South Africa

Publisher

Genie AI

Cost

Free to use

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