The Founders Stock Agreement is a crucial document used during company formation in Malaysia when two or more founders establish a new business venture. This agreement is essential for clearly defining the equity structure, rights, and obligations of founding members, ensuring compliance with Malaysian corporate law, particularly the Companies Act 2016. It typically includes provisions for share vesting, transfer restrictions, intellectual property assignment, and founder commitments. The document becomes particularly important when seeking investment, during ownership disputes, or when founders exit the company. It provides necessary protection for all parties involved and establishes a clear framework for company governance and decision-making processes.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Parties: Identification of all founding shareholders and the company
2. Background: Context of the agreement, including company formation details and purpose
3. Definitions: Key terms used throughout the agreement
4. Share Allocation: Details of initial share distribution among founders
5. Consideration: What each founder contributes in exchange for shares
6. Vesting Provisions: Timeline and conditions for share vesting
7. Transfer Restrictions: Limitations on selling or transferring shares
8. Right of First Refusal: Process for offering shares to other founders before external sale
9. Drag-Along and Tag-Along Rights: Rights in case of company sale or major share transfers
10. Founder Commitments: Time commitment, roles, and responsibilities of founders
11. Intellectual Property Assignment: Assignment of IP rights to the company
12. Confidentiality: Protection of company and founder confidential information
13. Non-Competition and Non-Solicitation: Restrictions on competing activities and poaching
14. Termination: Circumstances and process for agreement termination
15. Dispute Resolution: Process for resolving conflicts between founders
16. Governing Law: Specification of Malaysian law as governing law
1. Death and Incapacity: Procedures for handling shares in case of founder death or incapacity
2. Fair Value Determination: Method for valuing shares in various transfer scenarios
3. Anti-Dilution Protection: Protection against share dilution in future funding rounds
4. Board Representation: Rights of founders to board seats and voting arrangements
5. Founder Loans: Terms for any loans made by founders to the company
6. Good Leaver/Bad Leaver Provisions: Different treatment of shares based on circumstances of founder departure
7. Deadlock Resolution: Additional mechanisms for resolving serious disagreements
8. Future Funding Provisions: Arrangements for future investment rounds
1. Schedule 1: Share Capital Table: Detailed breakdown of share ownership and classes
2. Schedule 2: Company Information: Details of company registration, address, and business
3. Schedule 3: Founder Information: Detailed information about each founder
4. Schedule 4: Vesting Schedule: Detailed timeline and conditions for share vesting
5. Schedule 5: Initial Business Plan: Overview of company's initial business objectives
6. Schedule 6: IP Schedule: List of intellectual property being assigned to the company
7. Appendix A: Share Transfer Notice: Template for notice of intention to transfer shares
8. Appendix B: Deed of Adherence: Template for new shareholders to join the agreement
Authors
Relevant legal definitions
Clauses
Relevant Industries
Technology
E-commerce
Financial Services
Healthcare
Manufacturing
Professional Services
Real Estate
Consumer Goods
Education
Clean Energy
Biotechnology
Agriculture
Digital Media
Software Development
Consulting
Relevant Teams
Legal
Executive Leadership
Corporate Governance
Administration
Finance
Board of Directors
Company Secretariat
Compliance
Corporate Affairs
Relevant Roles
Founder
Co-founder
Chief Executive Officer
Chief Technology Officer
Chief Financial Officer
Chief Operating Officer
Company Secretary
Corporate Lawyer
Legal Counsel
Managing Director
Board Member
Director of Operations
Head of Legal
Startup Advisor
Business Development Director
Find the exact document you need
Share Partner Agreement
A Malaysian law-governed agreement establishing terms and conditions between share partners, including ownership rights, management, and profit-sharing arrangements.
find out more
Capital Raising Agreement
A Malaysian law-governed agreement establishing terms for capital raising through equity or debt instruments, ensuring compliance with local securities regulations.
find out more
Treasury Repurchase Agreement
A Malaysian law-governed agreement for securities repurchase transactions, compliant with Bank Negara Malaysia guidelines and capital market regulations.
find out more
Term Sheet For Share Purchase Agreement
A preliminary document under Malaysian law outlining key terms and conditions for a proposed share acquisition, serving as the foundation for a final Share Purchase Agreement.
find out more
Share Trust Agreement
A Malaysian law-governed agreement establishing a trust arrangement for company shares, defining relationships between settlor, trustees, and beneficiaries.
find out more
Mou Agreement For Investment In Business
A preliminary investment agreement framework under Malaysian law outlining proposed terms and conditions for business investment.
find out more
Bilateral Investment Agreement
A Malaysian law-governed agreement establishing investment protection and promotion framework between Malaysia and another country.
find out more
Future Equity Agreement
A Malaysian-law governed agreement providing investors with rights to future equity in a company, typically used for early-stage startup investments.
find out more
Shareholders Agreement And Share Subscription Agreement
Malaysian law-governed agreement combining share subscription terms with ongoing shareholder relationships and governance framework.
find out more
Redeemable Preference Share Agreement
A Malaysian law-governed agreement establishing terms for redeemable preference shares, including shareholder rights, dividend provisions, and redemption mechanisms.
find out more
Purchase Term Sheet
A Malaysian law-governed preliminary document outlining key terms and conditions for a proposed purchase transaction, serving as the basis for a definitive purchase agreement.
find out more
Purchase Of Shares Agreement
A Malaysian law-governed agreement documenting the terms and conditions for the sale and purchase of shares in a company, including price, warranties, and completion mechanics.
find out more
Memorandum Of Agreement For Investment
A Malaysian law-governed agreement that establishes the terms and conditions for investment arrangements, including capital injection, shareholding structure, and investor rights.
find out more
Investment Repayment Agreement
A Malaysian law-governed agreement establishing terms for investment disbursement and repayment, including security provisions and compliance requirements.
find out more
Business Investment Contract
A Malaysian law-governed agreement establishing terms and conditions for business investment transactions, including investment structure, rights, and regulatory compliance.
find out more
Venture Capital Agreement
A Malaysian law-governed agreement establishing terms and conditions for venture capital investment, including investment structure, governance rights, and exit mechanisms.
find out more
Share Allotment Agreement
A Malaysian law-governed agreement documenting the terms and conditions for the issuance of new shares by a company to subscribers.
find out more
Preference Share Subscription Agreement
A Malaysian law-governed agreement setting out terms for preference share subscription, including share rights, warranties, and completion mechanics.
find out more
Preference Share Agreement
A Malaysian law-governed agreement establishing terms for preference share issuance, including dividend rights, voting rights, and redemption terms.
find out more
Loss Share Agreement
A Malaysian-law governed agreement establishing terms for sharing losses between parties, typically used in financial and banking transactions.
find out more
Investment Mandate Agreement
A Malaysian law-governed agreement establishing the terms and conditions for professional investment management services between an investment manager and client.
find out more
Investment Agreement Between Two Individuals
A Malaysian law-governed agreement establishing investment terms and conditions between two individual parties.
find out more
Agreement For Transfer Of Shares
A legally binding agreement for the transfer of company shares between parties under Malaysian law, governed by the Companies Act 2016.
find out more
Term Sheet Venture Capital
A preliminary document outlining key terms and conditions for venture capital investment in Malaysia, serving as the basis for final investment agreements.
find out more
Investment Agreement Letter
A Malaysian jurisdiction document that formalizes investment terms and conditions between parties, outlining key investment parameters and commitments.
find out more
Stock Borrowing And Lending Agreement
A Malaysian law-governed agreement establishing terms for securities lending transactions, compliant with local regulatory requirements and market practices.
find out more
Agreement To Sell Shares Of A Company
A Malaysian law-governed agreement for the sale and transfer of company shares between seller(s) and buyer(s).
find out more
Personal Investment Contract
A Malaysian law-governed agreement setting out terms and conditions for personal investment activities between investors and investment service providers.
find out more
Rental Property Partnership Agreement
A Malaysian law-governed agreement establishing partnership terms for joint rental property ownership and management, including operational guidelines and profit-sharing arrangements.
find out more
Term Sheet For Investors
A Malaysian law-governed preliminary agreement outlining key terms and conditions for company investment, including valuation, rights, and governance structure.
find out more
Limited Partnership Agreement Venture Capital
Malaysian-law governed agreement establishing a limited partnership structure for venture capital investments, defining relationships between fund managers and investors.
find out more
Founders Stock Agreement
A Malaysian law-governed agreement establishing share ownership terms and conditions between company founders, including vesting schedules and transfer restrictions.
find out more
Short Term Investment Agreement
A Malaysian law-governed agreement establishing terms and conditions for short-term investments, including investment structure, returns, and regulatory compliance requirements.
find out more
Event Investment Contract
A Malaysian law-governed agreement establishing terms and conditions for event investment, including financial commitments and operational responsibilities.
find out more
Share Subscription Agreement And Share Purchase Agreement
A Malaysian law-governed agreement combining share subscription for new shares and purchase of existing shares, detailing terms, conditions, and completion mechanics for share transactions.
find out more
Stock Distribution Agreement
A Malaysian law-governed agreement establishing terms for stock distribution, including distributor appointment, rights, obligations, and regulatory compliance requirements.
find out more
Stock Investment Agreement
A Malaysian law-governed agreement establishing terms for share investment, including investor rights and company obligations under local securities regulations.
find out more
Restaurant Investment Agreement
Malaysian-law governed agreement establishing terms for restaurant business investment, including ownership, management rights, and operational requirements.
find out more
Joint Venture Agreement For Real Estate Investing
A Malaysian law-governed agreement establishing a joint venture for real estate investment, outlining parties' rights, obligations, and operational framework.
find out more
Share Purchase Agreement And Shareholders Agreement
A Malaysian law-governed agreement combining share purchase terms and ongoing shareholder relationships in a single comprehensive document.
find out more
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)