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An Equity Agreement spells out how ownership stakes are divided among shareholders in a Belgian company. It's a binding contract that details who owns what percentage of shares, voting rights, and how future profits will be distributed. Under Belgian Company Law, these agreements play a crucial role in both private firms and listed companies.

Beyond basic ownership rules, these agreements typically cover important scenarios like share transfers, exit rights, and anti-dilution protections. They're especially vital for Belgian startups and family businesses, where clear ownership structures help prevent disputes and align with the Belgian Corporate Governance Code. The agreement must be notarized to have full legal effect in Belgium.

Create an Equity Agreement when starting a new business venture in Belgium, especially if multiple founders or investors are involved. This agreement becomes essential during initial funding rounds, when bringing in new shareholders, or restructuring ownership in family businesses. Belgian law requires clear documentation of share ownership and voting rights from the outset.

The timing is particularly critical when negotiating with venture capitalists, planning employee stock options, or setting up governance structures for scale-ups. Belgian companies often implement these agreements before major business milestones like mergers, acquisitions, or preparing for an IPO. Having this framework in place helps prevent costly disputes and ensures compliance with Belgian corporate governance requirements.

• Simple Agreement For Future Equity: Basic startup funding tool that converts investments into equity at a later date
• Limited Partnership Agreement Private Equity: Structures relationships between general and limited partners in investment funds
• Phantom Stock Agreement: Provides employees benefits of stock ownership without actual shares
• Equity Transfer Agreement: Handles direct transfer of ownership stakes between parties
• Sweat Equity Agreement: Grants ownership in exchange for work or services instead of capital

• Company Founders: Initiate and sign Equity Agreements when establishing ownership structures or bringing in new partners
• Investors: Review and negotiate terms before providing capital, especially venture capitalists and angel investors in Belgian startups
• Corporate Lawyers: Draft and validate agreements to ensure compliance with Belgian Company Law and governance requirements
• Board Members: Approve and oversee implementation of equity structures and related governance policies
• Notaries: Authenticate and register agreements according to Belgian legal requirements
• Employees: Participate when receiving stock options or other equity-based compensation

• Company Details: Gather full legal names, registration numbers, and addresses of all participating entities
• Ownership Structure: Document current shareholding percentages and planned equity distributions
• Financial Terms: Define share values, investment amounts, and any special rights or restrictions
• Voting Rights: Outline decision-making powers and governance structure for shareholders
• Exit Provisions: Specify conditions for selling shares, tag-along rights, and drag-along rights
• Compliance Check: Ensure alignment with Belgian Corporate Code requirements and tax regulations
• Document Generation: Use our platform to create a legally-sound agreement that includes all mandatory elements

• Party Identification: Legal names, addresses, and registration numbers of all shareholders and the company
• Share Details: Precise description of share classes, quantities, and nominal values
• Transfer Rights: Pre-emption rights, restrictions on transfers, and exit mechanisms
• Governance Clauses: Voting rights, board representation, and decision-making processes
• Anti-dilution: Protection mechanisms for existing shareholders during future capital raises
• Belgian Law Reference: Explicit statement of Belgian law as governing law
• Dispute Resolution: Clear procedures for conflict resolution under Belgian jurisdiction
• Notarial Requirements: Provisions meeting Belgian notarial authentication standards

An Equity Agreement differs significantly from an Equity Participation Agreement in several key aspects, though both deal with ownership rights in Belgian companies. Understanding these differences helps choose the right document for your situation.

• Scope and Purpose: Equity Agreements establish comprehensive ownership structures and rights, while Equity Participation Agreements focus specifically on terms for joining as a new shareholder
• Legal Framework: Equity Agreements cover broader governance issues and require notarial authentication, whereas Participation Agreements often function as preliminary documents
• Flexibility: Equity Agreements set permanent ownership structures, while Participation Agreements typically allow more flexible entry terms and conditions
• Timing: Equity Agreements are foundational documents used at company formation or major restructuring, while Participation Agreements are commonly used for gradual ownership transitions or investment rounds