The Startup Equity Agreement is a crucial legal document used when structuring investment and ownership relationships in South African startup companies. It becomes necessary when a startup is raising capital, bringing in new investors, or restructuring its ownership. The agreement must comply with South African legislation, particularly the Companies Act 71 of 2008, and often includes considerations for BEE requirements. This document typically covers share subscription terms, shareholder rights and obligations, governance structures, exit mechanisms, and protective provisions for all parties. It's particularly important in establishing clear frameworks for ownership, decision-making rights, and investor protections while ensuring alignment with South African regulatory requirements and market practices.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership聽of your docs
1. Parties: Identification of all parties to the agreement, including the company, existing shareholders, and new investors
2. Background: Context of the agreement, including company history, purpose of investment, and current shareholding structure
3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation
4. Subscription for Shares: Details of share subscription, including number, class, and price of shares being issued
5. Payment and Issue of Shares: Terms and conditions of payment for shares and process for share issuance
6. Warranties and Representations: Warranties given by the company and existing shareholders regarding the business and shares
7. Pre-emptive Rights: Rights of existing shareholders regarding future share issues and transfers
8. Transfer Restrictions: Limitations and conditions on the transfer of shares
9. Tag-Along and Drag-Along Rights: Rights of shareholders to participate in or be forced to join in share sales
10. Board Representation: Rights to appoint directors and board governance matters
11. Reserved Matters: Decisions requiring special shareholder approval
12. Confidentiality: Obligations regarding confidential information
13. Dispute Resolution: Process for resolving disputes between parties
14. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. BEE Compliance: Specific provisions relating to Broad-Based Black Economic Empowerment requirements and compliance
2. Anti-dilution Protection: Provisions protecting investors from dilution in future funding rounds
3. Employee Share Scheme: Details of any employee share ownership program or related provisions
4. Dividend Policy: Specific provisions regarding dividend declarations and payments
5. Exit Provisions: Detailed procedures and rights relating to company sale or IPO
6. Founders' Commitments: Specific obligations and restrictions on founders, including non-compete and full-time commitment
7. Exchange Control Provisions: Required when foreign investors are involved, detailing compliance with South African exchange control regulations
8. Intellectual Property Rights: Specific provisions regarding IP ownership and protection, particularly relevant for technology startups
1. Share Capital Structure: Detailed breakdown of company's share capital before and after investment
2. Shareholding Details: Complete list of shareholders and their respective shareholdings
3. Company Information: Key company details including registration number, registered address, and directors
4. Warranties: Detailed warranties given by the company and existing shareholders
5. Reserved Matters List: Comprehensive list of decisions requiring special approval
6. Form of Deed of Adherence: Template for new shareholders to become bound by the agreement
7. Business Plan: Company's business plan and financial projections
8. Valuation Details: Information and calculations related to company valuation
Find the exact document you need
Founder Vesting Agreement
A South African law-governed agreement that establishes the terms and schedule for the vesting of a founder's shares in a company.
Download
Startup Equity Agreement
South African legal agreement governing equity investment terms and shareholder relationships in startup companies, aligned with local company law and regulations.
Download
Founder Employment Agreement
A South African law-governed agreement defining the employment relationship between a company and its founder, including executive duties, compensation, and protective provisions.
Download
Co Founder Separation Agreement
A South African law-governed agreement that outlines terms and conditions for a co-founder's exit from a business, including share transfers, obligations, and settlements.
Download
Co Founder Exit Agreement
A South African law-governed agreement documenting the terms and conditions for a co-founder's exit from a business, including share transfers and mutual obligations.
Download
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; 骋别苍颈别鈥檚 AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)