Document background
The Employee Shareholder Agreement is a crucial document for Malaysian companies implementing employee share ownership schemes as part of their talent retention and corporate growth strategies. It serves as the primary legal framework governing the relationship between the company and employees who hold or will hold shares, ensuring compliance with Malaysian corporate, employment, and securities laws. This agreement is typically used when companies want to offer shares to key employees, implement employee stock option plans, or create long-term incentive schemes. It addresses critical aspects such as share vesting schedules, performance conditions, good/bad leaver provisions, and share transfer restrictions, while also ensuring alignment with Malaysian regulatory requirements, including those under the Companies Act 2016 and Securities Commission guidelines.
