Document background
The Startup Equity Contract is a foundational document used when establishing or restructuring equity ownership in South African startup companies. This agreement is essential for companies seeking investment, implementing employee share schemes, or reorganizing their capital structure. The document must comply with South African Companies Act requirements and consider aspects such as BEE regulations, exchange control requirements for foreign investors, and local tax implications. The contract typically includes detailed provisions on share classes, voting rights, transfer restrictions, and exit mechanisms, making it particularly crucial for high-growth startups planning multiple funding rounds. It serves as the primary reference point for all equity-related matters and future corporate actions.
