As the business evolves, disputes may arise due to diverging interests or expectations among team members. Growth may bring shareholder disputes usually among founders, investors, or employees as they grapple with differences in vision or priorities among the stakeholders. This post looks at the common legal tools and instruments that can be agreed among the…
Should I give my lawyer equity stake in my startup?
It is uncommon for startup lawyers to get equity stake in exchange for legal services, but we may be open to accepting small percentages for startups (if your business is exciting enough). As a founder, you need to consider not just the dilution to the equity pie, but if the lawyer you are offering equity…
Sweat equity checklist for startups in Malaysia
As a startup lawyer, I get asked a lot on how to structure sweat equity where the company issues new shares to someone (usually with certain skills or expertise) in exchange for his or her contribution to the company. Whether you’re planning to give out sweat equity shares to an experienced adviser or mentor or…
Capital gains tax in Malaysia update
There are still many questions that need to be answered with respect to the proposed capital gains tax.
SAFE agreement and convertible notes in Malaysia update
Posted on Author IzwanPosted in Laws and Regulations, Angel Investing, Seed Rounds, Venture CapitalLeave a Reply
Earlier this week at the Malaysia Venture Forum 2023 the SC chairman said that an exemption will be introduced to further clarify the use of the Simple Agreement For Future Equity (‘SAFE’) agreements and convertible notes by investors investing in local startups in Malaysia. To summarise, SAFE notes including convertible notes are the usual funding…
Proposed capital gains tax (CGT) in Malaysia: How will this affect investors and startups?
What is the capital gains tax (CGT) recently announced in the budget 2023? What startup investors in Malaysia need to know about it.
Who issues the term sheet in a seed startup round?
The term sheet is a critical document that gives a ‘snapshot’ of the key terms and conditions of the proposed funding by an investor. It also serves as a ‘blueprint’ that will be used by the startup lawyer engaged to prepare the fundraising documents and shareholders agreement that will govern the relationship between the startup,…
Non-accredited angel investor for your startup: Yay or nay?
“Should you accept an investment offer from a non-accredited angel investor in Malaysia?” “Do you need to get accredited as an angel investor?” “What if the angel who invested in my startup wasn’t an accredited investor? Will I get into trouble?” No, there is no law requiring an investor to get accredited before he or…
Corporate venture capital update
A summary of the development of the corporate venture capital trends including the new CVC programme launched by Capital Markets Malaysia.
Dealing with investor’s veto rights for startups
What are investor’s veto rights and how should you navigate such a request from a potential investor for your company?