Document background
The Vested Equity Agreement is a crucial document used when companies want to grant equity to employees, contractors, or other stakeholders while ensuring their long-term commitment through a vesting schedule. This agreement type is particularly common in Hong Kong's dynamic business environment, especially among startups and growing companies looking to attract and retain talent. The document carefully balances the interests of both the company and the equity recipient, incorporating necessary provisions to comply with Hong Kong's corporate and securities laws. It typically includes detailed vesting schedules, conditions for acceleration or forfeiture, tax considerations, and transfer restrictions. The agreement must align with Hong Kong's Companies Ordinance and other relevant regulations while providing flexibility for companies to structure equity incentives that meet their specific needs.
