Once the investor acquires equity and becomes a shareholder, this document will be required. It sets out the investors' (shareholders') rights and obligations. It also includes information on the regulation of the shareholders' relationship and ownership of shares, and clauses relevant to the privileges and protection of the shareholder.
The directors of the company are required to approve the issue of new shares to the private investor. This will be recorded in a Resolution to Issue Shares.
Your main business asset may be a unique idea, a formula, a technique, a process, an invention, or a novel business model. Any of these may be the reason why your business will succeed. Protecting this confidential information through a Confidentiality Agreement or Non-disclosure Agreement (NDA) will give you confidence to talk to investors while you reveal some of this highly confidential information.