Document background
The Founder Shareholder Agreement is a critical document used when establishing a new company or formalizing the relationship between existing founding shareholders in Malaysia. It serves as the primary governing document for founder relationships, typically implemented at company formation or during early stages of operation. The agreement must comply with Malaysian corporate law, particularly the Companies Act 2016, and addresses key aspects such as shareholding structure, management rights, share transfer restrictions, and protection mechanisms. This document is essential for preventing future disputes by clearly defining founders' rights and obligations, decision-making processes, and exit procedures. It provides a framework for company governance while protecting both majority and minority shareholders' interests within the Malaysian legal context.
