Document background
The Advisory Shares Agreement is commonly used by Singapore companies, particularly startups and growth-stage businesses, to attract and retain expert advisors without immediate cash outlay. This document establishes the legal framework for granting equity compensation to advisors, defining their roles, responsibilities, and the terms of their share-based compensation. Under Singapore law, the agreement must comply with various regulations including the Companies Act, Securities and Futures Act, and relevant tax provisions. It typically includes detailed vesting schedules, service expectations, and protection mechanisms for both the company and advisor.
