Document background
The Investment Agreement Letter is a crucial document in Malaysian business practice that serves as a formal written commitment between investors and investee companies. It is typically used in the initial stages of an investment process to outline the fundamental terms and conditions of the proposed investment. The document needs to comply with Malaysian corporate law, including the Companies Act 2016 and Capital Markets and Services Act 2007, while also considering Islamic finance principles where applicable. It's particularly important in scenarios involving both domestic and foreign investments, serving as a precursor to more detailed investment agreements. The letter should address key elements such as investment amount, valuation, ownership structure, and basic rights while maintaining compliance with Malaysian regulatory requirements. This document is often used in conjunction with term sheets and due diligence processes, forming part of the broader investment documentation suite.
