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Startup Advisor Agreement for Malaysia

Startup Advisor Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes and regulates the relationship between a startup company and an external advisor. The document outlines the advisor's roles, responsibilities, compensation structure, and terms of engagement while ensuring compliance with Malaysian corporate and contract law requirements. It includes provisions for confidentiality, intellectual property protection, and clearly defines the independent contractor status of the advisor, while also addressing specific considerations for equity compensation if applicable.

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What is a Startup Advisor Agreement?

The Startup Advisor Agreement is essential for Malaysian startups seeking to formally engage experienced professionals in advisory roles. This document is typically used when a company requires strategic guidance, industry expertise, or specialized knowledge to support its growth and development. The agreement ensures clear definition of the advisory relationship, protecting both parties' interests while complying with Malaysian legal requirements. It becomes particularly crucial when the compensation includes equity components or when the advisor will have access to confidential information. The document addresses key aspects such as scope of services, time commitment, compensation structure, confidentiality obligations, and intellectual property rights, while maintaining flexibility to accommodate various advisory arrangements.

What sections should be included in a Startup Advisor Agreement?

1. Parties: Identifies the startup company and the advisor, including their full legal names, registration numbers (if applicable), and addresses

2. Background: Sets out the context of the agreement, including the startup's business and the advisor's expertise

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Appointment and Term: Establishes the advisor's role and the duration of the engagement

5. Advisor Services: Details the specific services, responsibilities, and commitments expected from the advisor

6. Time Commitment: Specifies the expected hours or level of involvement from the advisor

7. Compensation: Outlines the advisor's compensation structure, including cash fees, equity, or both

8. Confidentiality: Defines confidential information and establishes obligations to maintain confidentiality

9. Intellectual Property: Addresses ownership and rights to any IP created during the advisory relationship

10. Independent Contractor Status: Clarifies that the advisor is an independent contractor, not an employee

11. Termination: Specifies how and when either party can end the agreement

12. General Provisions: Contains standard legal clauses including governing law, notices, and entire agreement

What sections are optional to include in a Startup Advisor Agreement?

1. Non-Competition: Restricts the advisor from working with competing businesses - used when the advisor has access to sensitive competitive information

2. Board Observer Rights: Grants the advisor rights to attend board meetings - used when the advisor has a more strategic role

3. Expense Reimbursement: Details how expenses will be handled - used when the advisor is expected to incur expenses in their role

4. Equity Vesting: Specifies the vesting schedule for any equity compensation - used when equity is part of compensation

5. Representations and Warranties: Additional guarantees from either party - used in more formal or high-stakes advisory relationships

6. Indemnification: Provisions for protecting the advisor from liability - used in high-risk advisory situations

7. Assignment: Rules about transferring the agreement - used when there's potential for corporate restructuring or advisor role transfer

What schedules should be included in a Startup Advisor Agreement?

1. Schedule A - Services Description: Detailed outline of the specific advisory services to be provided

2. Schedule B - Compensation Terms: Detailed breakdown of compensation structure, including any equity calculations or vesting schedules

3. Schedule C - Approved Outside Activities: List of the advisor's other commitments that have been disclosed and approved

4. Schedule D - Confidentiality Agreement: Detailed confidentiality terms and requirements

5. Appendix 1 - Share Option Agreement: If applicable, the terms of any share options granted to the advisor

6. Appendix 2 - Company Policies: Relevant company policies that the advisor must comply with

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses

































Relevant Industries

Technology

E-commerce

Financial Technology

Healthcare Technology

Educational Technology

Biotechnology

Clean Technology

Software Development

Digital Services

Consumer Products

Manufacturing

Professional Services

Social Enterprise

Agriculture Technology

Relevant Teams

Legal

Executive

Finance

Human Resources

Corporate Development

Business Development

Operations

Board of Directors

Corporate Secretarial

Compliance

Relevant Roles

CEO

Founder

Co-founder

Chief Legal Officer

General Counsel

Legal Counsel

Company Secretary

Chief Financial Officer

Head of Business Development

Chief Technology Officer

Chief Operating Officer

Startup Advisor

Business Advisor

Technical Advisor

Industry Expert

Strategic Consultant

Board Member

Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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