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
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Sweat equity checklist for startups in Malaysia
By Izwan
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…
Capital gains tax in Malaysia update
By Izwan
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…
SAFE agreement and convertible notes in Malaysia update
By Izwan
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…
Proposed capital gains tax (CGT) in Malaysia: How will this affect investors and startups?
By Izwan
The recent budget 2023 by the Malaysian prime minister mentioned that a new capital gains tax (CGT) will be imposed on all shareholders selling shares in private companies.
Starting 1 March 2024, any disposal of shares will be subjected to…
Who issues the term sheet in a seed startup round?
By Izwan
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…
Non-accredited angel investor for your startup: Yay or nay?
By Izwan
“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…
Corporate venture capital update
By Izwan
Capital Markets Malaysia (CM), a capital market promotional entity under the Securities Commission Malaysia (SC) has launched a corporate venture capital (CVC) programme to get more companies, especially local public listed companies, to invest in startups and small…
Dealing with investor’s veto rights for startups
By Izwan
Any sensible investor would want to minimise their downside risks when making an investment especially in a risky asset class portfolio such as when investing in an early stage startup. The common way on how this may be achieved is…
Founder Institute Malaysia 2023 update
By Izwan
Starting a new company can be stressful and confusing especially for a first time founder. So I’m excited to hear recently that the Founder Institute Malaysia 2023 programme is finally going live again this year.
Founder Institute prefaces itself as…