Our Most Frequently Requested Documents, Their Uses, And The Clauses To Look Out For

06/04/2016

There have been requests for more than 5,000 documents via the Zegal app to date.

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Which documents were the most popular among small businesses? We investigated:

1. Confidentiality Agreement

What is it?

A legal contract, also known as a Non-Disclosure Agreement (NDA), which creates a relationship between parties to protect any type of confidential business information.

Use when:

  • Exchanging sensitive business information with business partners during commercial negotiation; such as information on pricing, product specifications, manufacturing process, market share or trade secrets.
  • Employing consultants or freelancers, or during the new employee recruitment process.
Key terms to agree on:

  1. A clear definition of the information to be kept confidential;
  2. Why you are exchanging information and for what purpose the information can be used;
  3. How long the agreement will be in place;
  4. What happens after the information is not needed anymore (e.g., at the end of the negotiation or specific purpose).

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2. Employment Contract

What is it?

A contract of employment for an employee of your business.

Use when:

  • Employing staff
Key terms to agree on:

  1. Any period of probation and notice to be given during probation;
  2. What benefits the employee will receive;
  3. How much notice must be given to  terminate the agreement;
  4. How confidential information should be protected.
  5. For senior employees, it’s also worth including the following:
    1. Waiver of intellectual property rights;
    2. Whether they can follow outside business interests;
    3. What restrictions you will impose post-termination.

Learn more

 

3. Consultancy Agreement

What is it?

A contract between a business and an independent consultant who is employed on a temporary basis.

Use when:

  • Engaging an independent consultant who is not an employee of your company.
Key terms to agree on:

  1. The number of hours the consultant will work;
  2. How the agreement will be terminated if the relationship doesn’t work out;
  3. Whether the consultant will have access to confidential information you want to protect;
  4. How any intellectual property created by the consultant is assigned to your company.

Learn more

 

4. Shareholders’ Agreement 

What is it?

An arrangement between a company’s shareholders that describes their rights and obligations and how the company should be operated.

Use when:

  • Entering into business with others; even if they are family, close friends, or a new business partner.
Key terms to agree on:

  1. Actions of the directors which require shareholder approval;
  2. The number of shareholders required to approve certain actions;
  3. Issue of new shares;
  4. Transfer of existing shares;
  5. Agreed process for valuing shares;
  6. Rights that different classes of shares can have;
  7. “Tag-along” and ‘drag-along” rights that can affect minority shareholders;
  8. Resolution of disputes between shareholders;
  9. What happens when a shareholder wants to exit the company;
  10. Whether shareholders are restricted from competing with the business of the company after they exit; and
  11. Events that may trigger the sale or winding up of the company.

Learn more

 

5. Website Privacy Policy

What is it?

A contract between website providers and users on how user data will be collected and used.

Use when:

  • Clarifying how your website will collect and use customer data.
Key terms to agree on:

  1. The nature of the information collected;
  2. How the information will be used;
  3. Who the information can be shared with;
  4. The cookies you use;
  5. Whether you use Google Analytics;
  6. Provision to the user of the option to receive or opt out of receiving direct marketing;
  7. Who the user should contact to exercise their rights under the Singapore Personal Data Protection Act, or Hong Kong Personal Data (Privacy) Ordinance.

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Summary: Essential legal documents for running your business

✓ Confidentiality Agreement

✓ Employment Contract

✓ Consultancy Agreement

✓ Shareholders’ Agreement

✓ Website Privacy Policy

 

Create and customise these 5 legal documents with Zegal with an annual subscription fee. 

Find out how Zegal can help make legal easy, fast and affordable:

 

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