Document background
The Venture Capital Shareholders Agreement is a crucial document used when a venture capital fund invests in a Malaysian company, establishing the framework for the investment relationship and ongoing company governance. It is typically implemented during Series A or later funding rounds, incorporating specific requirements under Malaysian law, including compliance with the Companies Act 2016 and relevant Securities Commission guidelines. The agreement covers essential aspects such as investment terms, shareholder rights, corporate governance, exit provisions, and protective clauses for all parties. This document is particularly important in the Malaysian context as it must balance international venture capital practices with local regulatory requirements, making it a fundamental tool for structuring venture capital investments in Malaysian companies.
