Document background
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.
