Document background
The Restricted Stock Unit Agreement serves as a crucial document in Malaysian corporate practice for companies looking to provide equity-based compensation to their employees. It is commonly used when a company wishes to grant restricted stock units as part of their employee compensation or retention strategy, while ensuring compliance with Malaysian securities laws and regulations. The agreement typically follows the requirements set forth by the Securities Commission Malaysia and must align with the Companies Act 2016, Capital Markets and Services Act 2007, and relevant tax regulations. This document is essential for both public and private companies in Malaysia implementing employee share schemes, as it provides a legally binding framework for the RSU program while addressing specific Malaysian regulatory requirements, tax implications, and corporate governance standards.
