Document background
The Startup Equity Agreement is a crucial document used when a startup company in New Zealand issues shares to investors, founders, or employees. It serves as the foundational document for establishing ownership rights and responsibilities within the company, ensuring compliance with New Zealand's Companies Act 1993 and Financial Markets Conduct Act 2013. This agreement is typically used during seed funding rounds, series investments, or when implementing employee share schemes. The document addresses key aspects such as share class rights, voting powers, transfer restrictions, and investor protections, while incorporating specific requirements of New Zealand corporate law. The Startup Equity Agreement becomes particularly important as it sets the framework for future funding rounds and potential exit scenarios, making it essential for both immediate transaction needs and long-term company governance.
