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An Advisor Agreement sets out the terms when someone provides expert guidance or consulting services to a company in New Zealand. It covers key details like the advisor's role, compensation (often including equity or share options), and confidentiality obligations.

These agreements protect both parties by clearly defining the scope of advisory services, meeting requirements, and intellectual property rights. They're especially common in startup ecosystems and professional services, where companies need specialized expertise without hiring full-time staff. Under NZ law, they must align with the Companies Act and relevant securities regulations when equity is involved.

Use an Advisor Agreement when bringing expert consultants or industry specialists into your New Zealand business, especially during growth phases or strategic transitions. This agreement becomes essential before sharing sensitive company information or when offering equity compensation to advisors who provide ongoing guidance.

The timing matters most when engaging high-profile advisors, entering new markets, or seeking specialized expertise for your board. Companies typically need these agreements when raising capital, developing new products, or expanding operations - situations where formal documentation of the advisor relationship protects both parties and clarifies expectations under NZ commercial law.

• Basic Advisory: The simplest form covering general business guidance, meeting schedules, and basic confidentiality terms
• Equity-Based: Includes share options or profit-sharing arrangements alongside advisory duties
• Technical Advisory: Focused on specific expertise areas like IT, engineering, or product development
• Board Advisory: More comprehensive agreements for formal board advisors with governance responsibilities
• Project-Specific: Time-limited agreements tied to particular initiatives or strategic goals

• Companies and Startups: Businesses seeking expert guidance, from early-stage ventures to established firms needing specialized advice
• Industry Experts: Experienced professionals providing strategic guidance, often maintaining multiple advisory roles across different organizations
• Legal Teams: In-house or external counsel who draft and review agreements to ensure compliance with NZ company law
• Board Members: Directors who oversee advisor appointments and ensure alignment with company governance
• Company Secretaries: Maintain official records and manage administrative aspects of advisor relationships

• Advisor Details: Gather full contact information, qualifications, and any professional registrations or certifications
• Scope Definition: Outline specific services, time commitments, and deliverables expected from the advisor
• Compensation Terms: Define payment structure, including any equity arrangements, expenses, or performance bonuses
• Duration Planning: Determine agreement length, renewal options, and termination conditions
• Confidentiality Needs: List specific information requiring protection and any existing NDAs
• Company Information: Include accurate legal entity details and signing authority documentation

• Parties and Roles: Full legal names, contact details, and clear description of advisory responsibilities
• Service Terms: Detailed scope of advisory services, meeting frequency, and performance expectations
• Compensation: Payment structure, equity arrangements, and reimbursement policies aligned with NZ tax laws
• Confidentiality: Comprehensive protection of business information and trade secrets
• Term and Termination: Agreement duration, renewal options, and exit conditions
• Intellectual Property: Clear ownership rights of any IP created during the advisory period
• Governing Law: Explicit reference to New Zealand jurisdiction and dispute resolution methods

An Advisor Agreement differs significantly from an Agency Agreement, though both involve external parties working with a company. Understanding these differences helps you choose the right document for your situation.

• Authority Level: Advisors provide guidance and recommendations but cannot bind the company legally, while agents can enter into contracts and make commitments on behalf of the company
• Compensation Structure: Advisor payments typically involve fixed fees or equity, whereas agency agreements often include commission-based compensation tied to specific transactions
• Duration and Commitment: Advisory roles tend to be ongoing strategic relationships with flexible time commitments, while agency relationships are usually more structured with specific performance targets
• Legal Liability: Advisors have limited liability focused on confidentiality and conflict of interest, but agents carry greater liability for their actions on behalf of the principal