Malaysian lawmakers have been busy in the past several months. New laws are expected to affect technology companie and startups operating online platforms and businesses such as gig economy platforms, ‘Buy Now, Pay Later’ (BNPL) operators, social media and messaging platforms.
Other regulatory updates also include the anticipated Securities Commission of Malaysia’s fintech regulatory sandbox, additional
Tony Hsieh, founder of Zappos with a net worth of over US$800 million, passed away in 2020 without a will despite selling his stake to Amazon. His death led to family squabbles and legal complications, highlighting the importance of succession planning to avoid such disputes, even after exiting a business.
The death of a founder
These non-standard terms can be detrimental to founders, especially first-time founders who encounter such terms often without realising their long-term implications.
This article explores several non-standard terms we’ve encountered in our past experience and explains why they should be approached with caution.
Excessive liquidation preference
Liquidation preferences are usually anticipated in a term sheet, designed
Malaysia’s startup ecosystem is vibrant and growing, and many founders are considering establishing a presence here. As a startup lawyer who regularly advises founders on establishing a startup in Malaysia, I’ve put together eight frequently asked questions (FAQs) that hopefully will help address your most frequent concerns.
What is the usual way for a startup
When it comes to raising capital, a startup has to decide if the funding round is going to be a priced or unpriced round. The choice between these two funding structures can have significant implications on your startup’s valuation, future fundraising outlook and options, and overall equity dilution.
In this article, we will look at
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
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
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
Following a new gazette on 29 December 2023, the effective date for the capital gains tax on gains or profits received from the disposal of shares of unlisted companies formed in Malaysia will start from 1 March 2024, in line with the original announcement in the Malaysia’s Budget 2024. To recap, a capital gains tax
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
