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An Equity Agreement sets out how company ownership is divided and managed between shareholders in New Zealand businesses. It spells out each party's rights, responsibilities, and share of company value - covering everything from initial investment amounts to voting rights and profit sharing.

Under NZ's Companies Act 1993, these agreements help prevent disputes by clearly documenting key terms like share transfer restrictions, dividend policies, and exit procedures. They're especially important for startups and small businesses where founders need to protect their interests while attracting investment. The agreement works alongside your company constitution and shareholders' agreement to create a complete ownership framework.

You need an Equity Agreement when setting up a new business venture with multiple owners or bringing new investors into your existing NZ company. This becomes crucial during funding rounds, when adding business partners, or restructuring ownership - especially if different parties are contributing varying amounts of capital, expertise, or other resources.

The agreement proves particularly valuable when founders want to protect intellectual property rights, establish clear decision-making processes, or plan for future exits. It's essential before accepting angel investment or venture capital, and helps prevent costly disputes by documenting everyone's expectations upfront. Many startups create these agreements alongside their initial company registration.

• Private Equity Subscription Agreement: Used for formal investment rounds, detailing share pricing and subscription terms
• Equity Investment Agreement: Broader agreement covering investment terms, rights, and obligations between company and investors
• Business Equity Agreement: General partnership agreement outlining ownership structure between business partners
• Phantom Equity Agreement: Provides profit-sharing benefits without actual share ownership
• Equity Compensation Agreement: Specifically for employee share schemes and performance-based equity rewards

• Company Founders: Initiate and sign Equity Agreements when establishing ownership structure or bringing in new partners
• Business Partners: Join existing ventures through equity arrangements, contributing capital or expertise
• Angel Investors: Review and negotiate terms before providing early-stage funding to NZ startups
• Corporate Lawyers: Draft and review agreements to ensure compliance with Companies Act requirements
• Company Directors: Approve and implement equity structures, managing shareholder relationships
• Employees: Participate in share schemes or phantom equity programs as part of compensation packages

• Company Details: Gather full legal names, registration numbers, and registered office addresses of all parties
• Ownership Structure: Document exact shareholding percentages, share classes, and voting rights
• Financial Terms: Calculate investment amounts, share valuations, and payment schedules
• Rights Package: Define dividend rights, board representation, and pre-emptive rights
• Exit Provisions: Outline transfer restrictions, tag-along rights, and buy-out procedures
• Signing Authority: Confirm who has authority to execute the agreement for each party
• Template Selection: Use our platform to generate a legally-sound agreement tailored to NZ requirements

• Party Details: Full legal names, addresses, and company registration numbers of all shareholders
• Share Structure: Details of share classes, quantities, prices, and total ownership percentages
• Consideration: Clear terms of payment or value exchange for shares
• Voting Rights: Specific voting powers and decision-making thresholds
• Transfer Provisions: Rules for selling or transferring shares, including pre-emptive rights
• Dispute Resolution: Process for handling disagreements under NZ jurisdiction
• Governing Law: Explicit statement of NZ law application and Companies Act compliance
• Execution Block: Proper signature sections with witness provisions

An Equity Agreement differs significantly from a Simple Agreement for Future Equity (SAFE) in several key ways. While both deal with company ownership, they serve different purposes and timing needs in the New Zealand business context.

• Immediate vs Future Rights: Equity Agreements create immediate shareholding rights, while SAFEs promise future equity conversion, usually after a qualifying event
• Complexity Level: Equity Agreements are more comprehensive, covering current governance and shareholder rights; SAFEs are intentionally simpler and focused on future conversion terms
• Valuation Requirements: Equity Agreements need current company valuation, while SAFEs often defer valuation until a future funding round
• Voting Rights: Equity Agreements typically include immediate voting rights; SAFE holders usually have no voting power until conversion
• Legal Status: Under NZ law, Equity Agreement holders are immediate shareholders, while SAFE holders are considered creditors until conversion