Case Studies
"An Il-un Partner Attorney, Column Contribution on the Pros and Cons and Precautions of Startup Co-founding"
Law firm Veat partner attorney An Il-woon contributed a column on the advantages and disadvantages of startup co-founding and points to note. According to our Commercial Code, shares are, in principle, freely transferable by their owners (Commercial Code Article 335, Paragraph 1). Therefore, if co-founders sell their shares to an external third party, a major shareholder who is completely unknown to the company's general meeting of shareholders may appear and become involved in the company's management. This situation can destabilize the company's governance structure and cause confusion in the management team’s decision-making. Advantages and Disadvantages of Startup Co-founding, and Points to Note_Innovation Forest (2024.11.27) Attorney An Il-woon explained in detail in this column the advantages and disadvantages of co-founding, and the importance of a shareholders’ agreement to prevent and resolve problems that may arise between co-founders. Please refer to the content below for detailed information.
Shareholder agreement violation, legal solutions for growing startups.
Law firm Veat received a request from Startup A (hereinafter referred to as the "client"), which is raising investment and growing. We reviewed the validity of shareholder agreements and the possibility of stock repurchase. In particular, we analyzed the applicability of key provisions such as preferential purchase rights and stock purchase rights stipulated in the shareholder agreement, and carefully examined the possibility of stock repurchase in the event of a violation. First, Law firm Veat analyzed the detailed provisions of the shareholder agreement executed by the client. In particular, we reviewed the legal validity of the preferential purchase right and stock purchase right provisions related to stock repurchase, and judged whether the failure to perform the obligations of the other party could be recognized as a breach of contract. As a method to recover shares held by a partner in the event of a violation of a shareholder agreement, we presented various solutions, such as assignment following contract termination, exercise of preferential purchase rights, and activation of stock purchase rights, and recommended the most effective method from the client's perspective. Startup and Shareholder Agreement: The Role of Essential Legal Documents Startups pursue innovation and growth in a rapidly changing market environment, but often face legal risks in the process. In these cases, a shareholder agreement, which clearly defines the relationship between founders, investors, and partners, is a necessary tool for the startup's sustainable and stable growth. Startups at the early stage of raising external investment enter into shareholder agreements to guarantee operating and decision-making rights for investors as part of the investment process for fundraising. A shareholder agreement documents promises between shareholders and establishes the roles, rights, and obligations of each party, creating a legal effect. This document includes key provisions such as preferential purchase rights and stock purchase rights, allowing existing shareholders to prevent dilution of their shares through external investment and effectively reconcile the interests of investors and founders. In addition, a partnership agreement entered into for cooperation between founders at the beginning can also evolve into a shareholder agreement. This establishes a foundation of trust between founders, clearly defines management responsibilities and rights, and creates an environment in which the startup can grow stably. Violation of a shareholder agreement can affect the management of a startup. First, it can damage trust among shareholders, leading to confusion in the company's decision-making process and internal conflicts, which can undermine the credibility of external investors and destabilize management. Second, failure to properly implement or abuse key provisions of a shareholder agreement, such as preferential purchase rights or stock purchase rights, can lead to a decline in stock value or increased unnecessary litigation costs, leading to financial losses for the company. Therefore, startups need to set clear provisions and manage them systematically when entering into a shareholder agreement, and it is advisable to seek advice from a legal expert who has extensive experience in related matters to prepare for contract violations. Law firm Veat provides legal advice to a wide range of companies, from early-stage startups to unicorns and decacorns, and mediates the interests of investors and founders, providing comprehensive legal support for the growth and success of domestic and international startups. Law firm Veat's expertise, which is listed in the Bloomberg League Table as TOP 5 for M&A transaction volume in the first half of 2024, serves as a reliable foundation for startups to achieve success. In addition, Law firm Veat helps startups achieve sustainable growth by designing internal regulations and providing legal advice on risk management to quickly resolve disputes that may arise in startup management and minimize risks. Law firm Veat not only provides legal advice but also collaborates with global accelerator Next Challenge to revitalize the startup ecosystem and serves as a strategic partner growing with startups from the early stages to global growth, providing assistance in the startup’s growth process. If you need legal advice on shareholder agreements and partnership agreements, please feel free to contact Law firm Veat. Thank you. Law firm Veat
Step-by-step review for virtual asset business models and business structure changes.
Law firm Veat received a request from digital virtual asset platform A (hereinafter referred to as "the client") to review risks related to the transition of its asset business model and changes to its business structure. The client had previously outsourced operations to B Corporation, but planned to establish C Corporation and conduct existing and new businesses through C Corporation. The client requested a review of potential legal risks involved in the process of changing the business structure, given that the representatives of the client, B Corporation, and C Corporation were the same. Law firm Veat provided legal advice to review the legal risks of the newly promoted virtual asset-based business model and prevent conflicts between regulations and corporate activities regarding changes to the business structure. Law firm Veat’s Step-by-Step Review STEP 1. Risk Review for Changes in Business Operating Entity When transitioning operations from B Corporation to newly established C Corporation, we reviewed potential legal disputes between various stakeholders in the process of terminating existing contracts and entering into new contracts, as well as the legality and efficiency of whether liabilities and obligations would be transferred to the new corporation. STEP 2. Asset Transfer through Asset Acquisition We reviewed potential legal risks that could arise in the process of transferring equity and related assets, depending on the method of changing the business operating entity through contracts among the client, B Corporation, and C Corporation, such as asset acquisition. Note that in some cases, transfer or assignment of contracts cannot be done without the consent of the existing contract parties. STEP 3. Adjusting Interests of Other Shareholders Since B Corporation was not a one-person company, we advised that collaboration and decision-making should precede any changes in the business operating entity to consider the possibility of existing shareholders claiming disadvantage, and reviewed potential risks in this process. STEP 4. Review of Legal Risks Related to Virtual Asset Business In the case of a virtual asset business, compliance with reporting obligations stipulated in laws and regulations such as the Act on Reporting and Use of Specific Financial Transaction Information (hereinafter referred to as "Specific Financial Transaction Act") is required. Virtual asset businesses must register with the Financial Intelligence Unit, and if a virtual asset transaction is operated as a business without registration, one may be sentenced to imprisonment for up to five years or fined up to 50 million won (Specific Financial Transaction Act Article 37 (1) and Article 57 (1)), and the regulations in the Specific Financial Transaction Act and the Virtual Asset User Protection Act also apply in the same way even if the acts are carried out overseas and their effects are felt in Korea. Virtual Asset User Protection Act Meanwhile, the Virtual Asset User Protection Act, newly enacted and put into effect in July, stipulates that virtual asset businesses shall not trade or engage in other transactions involving virtual assets issued by them (Virtual Asset User Protection Act Article 10 (5)), which effectively prohibits the issuing entity and its related parties from engaging in any transactions related to those virtual assets. - Definition and Scope of Virtual Assets It defines virtual assets as electronic evidence of economic value that can be traded or transferred electronically. However, it excludes electronic evidence that cannot be exchanged for money, goods, or services, or when the issuer limits its use and purpose. - User Asset Protection Virtual asset businesses must store user deposits in public institutions such as banks, and are obligated to store at least 80% of virtual assets in cold wallets. - Regulation of Unfair Trading Practices It prohibits unfair trading practices such as market manipulation, use of non-public important information, and fraudulent transactions, and may impose administrative penalties equal to twice the amount of illegal profits in violation. - Strengthening of Financial Supervisory Authority’s Supervisory and Investigatory Powers The Financial Supervisory Commission and the Financial Supervisory Service can inspect the business and financial status of virtual asset businesses and investigate unfair trading practices, and may take measures such as suspension of business, order to rectify, and referral for indictment, if necessary. Law firm Veat provided legal advice focusing on the Specific Financial Transaction Act and the Virtual Asset User Protection Act to ensure the client's new business can operate stably within the legal environment and to prevent conflicts with relevant regulations by restructuring the operating structure of the existing business. Law firm Veat provides tailored solutions to clients, based on the accumulated experience and expertise gained by providing legal advice to numerous domestic and foreign companies in the business model review and virtual asset and blockchain legal fields, going beyond simply resolving legal issues and managing legal risks in advance in the changing digital economy environment, so that clients' businesses can grow sustainably and stably. We recommend that companies requiring virtual asset and business model consulting secure legal stability through Law firm Veat. Thank you. Law firm Veat
[Law firm Veat TIP] Criteria for originality of video works you should know.
Law firm Veat TIP (Technology Intellectual Property) team has contributed a detailed column on criteria for originality of video works to Flattum, a media platform specializing in startups.
Food Quarantine Declaration Administrative Punishment Response and Legal Response Methods
Law firm Veat received a request from a global food company A (hereinafter referred to as "the client") to review the validity and response measures regarding administrative actions related to food quarantine declarations. The client initially reported some information in the food quarantine declaration for imported goods, but some items were missing during the amendment process. They requested a review of whether or not this constituted a violation of the 『Imported Food Safety Management Act』 (hereinafter referred to as "the Imported Food Act"). The Imported Food Act requires various legal regulations and procedures to protect the health and safety of consumers, and strictly prohibits false reporting and non-reporting actions during the import quarantine stage. Violations are subject to administrative actions. Law firm Veat reviewed the validity of the administrative actions related to the food quarantine declaration based on the Imported Food Act and presented legal measures to effectively respond. Food Quarantine Declaration A food quarantine declaration is a necessary procedure to confirm that imported food complies with domestic regulations. During the food quarantine declaration process, the quality, ingredients, and manufacturing process of imported food are reviewed, and if they do not meet the country's food safety standards, imports may be restricted or subject to administrative action. Imported Food Act The Imported Food Act clearly regulates obligations related to food quarantine declarations and is a legal system established to provide safe imported food to domestic consumers. This law establishes management standards for various imported items such as imported food, food additives, instruments, containers, and packaging to ensure food safety and quality. The Imported Food Act is an important regulation that companies must comply with, and violations may result in sanctions such as business suspension, fines, and criminal punishment. Imported Food Act Article 20, Paragraph 1 Imported Food Act Article 20, Paragraph 1 stipulates that both unreported and falsely reported actions related to food quarantine declarations are subject to a business suspension. The types of violations include unreported and falsely reported actions. Unreported action means failing to submit a required quarantine declaration when importing food, food additives, instruments, or containers and packaging. A falsely reported action means knowingly or negligently entering information different from the actual situation in the declaration process. These violations are subject to legal sanctions, such as business suspension, fines, and criminal punishment, so extra caution is needed when making food quarantine declarations. Law firm Veat first reviewed whether the client's initial and amended food quarantine declarations were duly received, based on the client’s reporting and omissions. The Imported Food Act stipulates that if the requirements are not met clearly, the food quarantine declaration itself may be deemed invalid. Therefore, we thoroughly analyzed whether each declaration followed the prescribed format and procedures. Furthermore, as falsely reported and unreported actions are stipulated as reasons for business suspension, we jointly reviewed whether the client's actions were subject to action and whether there was intent or negligence in the actions. The Imported Food Act includes a provision allowing for mitigation of action if there is no intent or the degree of violation is minor. Even simple administrative errors related to food quarantine declarations by a global food company can have a significant impact on business management, and food-related laws serve as essential norms to protect consumer health and safety. Law firm Veat provides customized legal advice based on a deep understanding of numerous global companies' Imported Food Act and related regulations to minimize clients’ legal risks. If you need legal advice related to food quarantine declarations and the Imported Food Act, please feel free to contact Law firm Veat. Thank you. Law firm Veat
Reducing legal risks with a smart approach, Law firm Veat provides legal advice for building successful financial platform services.
Law firm Veat received a request from startup A (hereinafter referred to as the “customer”) preparing a money lending platform to review whether registration as a money broker is required under the Money Lending Business Act when operating the platform. 「Act on Registration of Money Lending Business and Protection of Financial Service Users」(hereinafter referred to as the “Money Lending Business Act”) Article 2 (Definitions) The meanings of the terms used in this Act are as follows. 1. “Money Lending” means engaging in the business of money lending (including the lending of money through bills of exchange discounts, security interests, or other similar methods). This is referred to as “money lending” hereinafter. 2. “Money Brokering” means engaging in the business of money brokering. 3. “Registered Money Lender” means a money lender registered pursuant to Article 3. Law firm Veat determined that there was a possibility of being considered a money broker in the case where the platform connects money lenders and prospective borrowers and plays a substantial role in concluding lending contracts. Accordingly, Veat confirmed whether the customer's service went beyond the simple provision of information to perform actual money brokering activities and reviewed the scope of money lending and money brokering as defined in Article 2 of the Money Lending Business Act to review the necessity of money broker registration. The customer also intended to provide advertising services and provide information about lending companies. Law firm Veat thoroughly analyzed the possibility of such activities being considered money brokering and whether money broker registration would be required. Furthermore, Veat explained in detail the capital requirements, qualifications of the management, and registration procedures that the customer must satisfy if money broker registration is required and provided legal advice to facilitate their implementation. Legal Issues to Note Regarding Money Lending and Money Lending Information Services Advertising restrictions must be strictly adhered to when engaging in money lending and providing money lending information. Even if simply providing information, a verification process must be established to ensure reliability if the information is inaccurate. Also, if false or exaggerated expressions are included in lending advertisements, or if inappropriate expressions are used to entice consumers, the 「Act on Fair Promotion」(hereinafter referred to as the “Advertising Act”) may apply. Therefore, it is recommended to seek assistance from legal professionals familiar with relevant laws when considering a money lending business. Law firm Veat provides specialized legal advice for IT and startups, supporting a wide range of legal issues from startup's initial business ideas to legal structure design and review of relevant laws. In particular, Veat has a deep understanding of the complex legal issues of technology-based businesses and financial services and provides practical solutions to contribute to the customer's business success. Recognizing this expertise, Law firm Veat was selected as a "Notable Firm" in the 'Fintech Financial Services/Technology-Based Startups Advice' category by the international evaluation agency THE LEGAL 500. This demonstrates that Veat has established itself as a trusted legal advisory firm in the field. Furthermore, Law firm Veat provides legal advice related to Fintech Financial Services to minimize legal risks and provide professional and practical support to meet the legal requirements optimized for each customer's business model. If you require legal review and advice regarding financial services, please feel free to contact Law firm Veat. Thank you. Law firm Veat
[202411] Monthly Veat November Issue_ Dealing with Malicious Reviews of Companies, A to Z
Okay, here's the translation of the text from the provided URL, following your specific instructions: 저희 Law firm Veat는 기업, 개인을 위한 종합적인 법률 서비스를 제공하는 대한민국의 대표적인 Veat 법무법인입니다. 저희는 다년간의 경험과 전문성을 바탕으로 고객의 성공적인 비즈니스를 지원하고 있습니다. 저희 법무법인은 다양한 분야에서 전문성을 갖춘 변호사들이 근무하고 있으며, 각 분야별로 깊이 있는 지식과 경험을 제공합니다. Veat 법인 변호사들은 기업의 설립, 투자, 인수합병, 분쟁 해결 등 다양한 법률 문제를 해결해 드립니다. 저희는 고객의 입장에서 생각하고, 최상의 법률 서비스를 제공하기 위해 노력하고 있습니다. 고객의 성공적인 비즈니스를 위한 든든한 파트너가 되겠습니다. Law firm Veat는 고객의 신뢰를 최우선으로 생각하며, 투명하고 윤리적인 법률 서비스를 제공합니다. 저희는 고객과 함께 성장하고 발전하는 것을 목표로 합니다. Veat 법인과 함께 성공적인 미래를 만들어가십시오.
Small business M&A essential guide, a shortcut to startup success.
Law firm Veat represents small companies (hereinafter "client companies") with capital of less than 1 billion won, conducting legal reviews and procedures for the Commercial Code, articles of incorporation, and existing investment contracts for business transfers. Law firm Veat carefully reviews the main issues of business transfers, confirms procedures that can be omitted according to the special rules for small companies, and proposes simplified methods while maintaining legal validity. Also, we thoroughly analyzed the client’s articles of incorporation and detailedly guided procedures that can replace the board of directors in cases where a board does not exist. Also, we reviewed existing investment contracts to confirm whether there was a prior written consent for technology transfer and whether there were transactions that would have a significant impact on management performance, and informed you. Legal Considerations Related to Business Transfers Key Requirements under the Commercial Code Business transfers are not merely a transfer of assets but a comprehensive assignment including rights and obligations, and require important decisions in legal, financial, and operational aspects. In business transfers, it is necessary to consider various legal matters such as key requirements under the Commercial Code, articles of incorporation, and investment contract conditions. According to Article 274 of the Commercial Code, in order to protect the rights of shareholders and ensure transparent decision-making regarding matters related to company assets, a company must obtain a special resolution of the shareholder meeting if it transfers all or a significant portion of its business or decides to do so. A special resolution requires more than two-thirds of the attending shareholders to vote in favor and more than half of the issued shares to be voted in favor, unlike a regular resolution. Also, in order not to cause creditors or contract counterparties, who are stakeholders in the business transfer process, to receive unfavorable treatment, compliance with creditor protection procedures must be observed (Article 230 of the Commercial Code). However, Article 230-1 of the Commercial Code provides that small companies with capital of less than 1 billion won may be exempt from the special resolution requirements of the shareholder meeting under the Commercial Code and other certain requirements, reflecting the realistic management environment and the need for rapid decision-making. Company Internal Regulations The articles of incorporation are a document specifying the company’s internal regulations and may be the conditions for resolutions by the board of directors and shareholder meeting for business transfers. In a company that does not have a board of directors, this can be replaced with a resolution by the board of directors, and the procedures may vary depending on the provisions of the articles of incorporation, so a thorough review must be performed. Investment Contract Conditions Conditions regarding technology transfer, intellectual property rights, and shareholders are important items, and the impact of these conditions on business transfers must be analyzed from various angles during the legal review process, and they should be implemented through counterparties and legal experts if necessary. As business transfers like these involve many things to be reviewed comprehensively, it is important to seek advice from a legal expert specializing in business transfers. Law firm Veat, a reliable partner for startups Since its establishment in 2015, Law firm Veat has provided legal advice to various companies, including startups, IT companies, and venture capital firms, accurately understanding the legal issues faced by companies and providing prompt advice, and has established itself as a trusted legal partner from the initial stage of startups to business expansion. Law firm Veat was ranked among the top 5 in the Bloomberg M&A league table for the first half of 2024 in terms of the number of transactions, and has successfully executed various investment contracts and M&A projects. We also provide practical and executable solutions by analyzing clients’ legal problems from various angles. If you need legal advice related to business transfers, please contact Law firm Veat specializing in M&A. Thank you. Sincerely, Law firm Veat
Employee faces personal information? The necessity of portrait rights and legal review.
Modern companies often conduct online marketing in various ways, and this process frequently involves using photographs of employees, such as their faces. However, when marketing is done using employee photographs, the relevant procedures must be followed in accordance with applicable laws and regulations. Law firm Veat, at the request of a non-face-to-face mediation platform A (hereinafter "client"), reviewed these issues and provided legal advice on the drafting of consent forms and consent procedures necessary to lawfully use the faces of employees. What legal issues could arise when using someone's face? ◾ Possibility of Portrait Rights Infringement Supreme Court Ruling, April 13, 2023, Case No. 2020da253423 Everyone has the right not to be photographed or depicted in drawings and not to be publicly disclosed or used for profit concerning their face or other physical characteristics that can be socially perceived as identifying a specific individual. This portrait right is also constitutionally protected under Article 10(1) of the Constitution, so unless there are special circumstances, any unlawful infringement thereof constitutes a tort. Using someone's face for profit without their consent can lead to a violation of that person's 'portrait rights'. Especially, using not only the faces of employees but also any physical characteristics that can be socially perceived as identifying a specific individual without permission could infringe upon the employees' portrait rights, so caution is needed. ◾ Necessity of Consent for Personal Information Collection and Use Personal Information Protection Act Definitions (Article 2) The following terms shall have the following meanings when used in this Act: 1. "Personal information" means information relating to a living individual, including any of the following: a. Information that can identify an individual through their name, resident registration number, and images, etc. b. Information that, even if it cannot identify a specific individual on its own, can be easily combined with other information to identify that individual. Whether such information can be easily combined shall be determined by reasonably considering the availability of other information, the time, cost, and technology required to identify an individual. c. Information that cannot identify a specific individual without the use or combination of additional information to restore it to its original state in accordance with subparagraph 2 of Article 1 (hereinafter "pseudonym information"). Article 15 (Collection and Use of Personal Information) (1) A personal information processor may collect personal information and use it within the scope of the purpose of collection if any of the following conditions are met: 1. Consent of the information subject has been obtained. 2. ~ 7. (Omitted) Using someone's face for profit without their consent can lead to a violation of the 「Personal Information Protection Act」. The Personal Information Protection Act defines information related to a living individual, such as names, resident registration numbers, and images, as personal information, and to collect and use such personal information, consent from the information subject, or the person to whom the information belongs, must be obtained unless there are special circumstances. A person's face is generally considered to be personal information, so when using employee faces for online marketing, it is generally necessary to provide certain information as stipulated in the Personal Information Protection Act and obtain employee consent. ◾ Necessity of Consent for Third-Party Provision of Personal Information Personal Information Protection Act Article 17 (Provision of Personal Information) (1) A personal information processor may provide (including sharing) personal information of an information subject to a third party if any of the following conditions are met: 1. Consent of the information subject has been obtained. 2. Providing personal information within the scope of the purpose of collection as stipulated in Article 15(1)(2), (3) and (5) to (7). As mentioned above, since a photograph of a living individual’s face is likely to be considered personal information, it is generally necessary to obtain the information subject’s consent before providing it to a third party. Due to the nature of online marketing, there is a high probability that the information of a specific employee will be provided to a third party when using their face in marketing. In such cases, it is generally necessary to inform the third party receiving the personal information, the purpose for which the personal information is being used, and obtain their consent. Customized legal advice from Law firm Veat, possessing expertise in personal information Law firm Veat reviewed the Personal Information Protection Act, guidelines from the Personal Information Protection Committee, and examined the validity of the consent obtained from employees who are the subjects of the faces used for online marketing by the client. Also, the firm provided detailed guidance on the consent form format and consent methods to be used in future cases. Law firm Veat, based on its deep expertise in IT, startups, and personal information protection, meticulously reviewed the client’s inquiries in this case to ensure compliance with the 「Personal Information Protection Act」 and other relevant laws, and provided customized legal advice. If you need legal advice to minimize legal risks related to the collection and use of personal information and to operate your company stably, we recommend that you seek assistance from Law firm Veat. Thank you. Law firm Veat
"How should we prepare for the shareholder meeting?"
The articles of incorporation of a corporation's shareholder meeting is an important event in all corporate operations, as it involves approving financial statements, appointing directors and auditors, amending the articles of incorporation, and making other core decisions for the company. According to the Commercial Code, a corporation is obligated to convene a shareholder meeting at a certain time once a year (Commercial Code Article 882). While the Commercial Code does not specify the timing of the regular shareholder meeting, most companies hold their regular shareholder meeting in March and hold extraordinary shareholder meetings as needed, depending on the agenda. Stock option grants that are not approved through a shareholder meeting are invalid, and adjustments to director compensation also require shareholder approval. This post aims to inform you about the key points to consider during the process of preparing for a shareholder meeting. Key Points to Consider During the Shareholder Meeting Preparation Process Board Resolution and Shareholder Meeting Notification Convening a shareholder meeting begins with a board resolution. Shareholders must be notified in writing at least two weeks before the meeting date, and electronic documents can also be used if each shareholder agrees (Commercial Code Article 883). Special Provisions for Small-Sized Companies Small-sized companies with capital of less than 100 million won can shorten the notification period for the shareholder meeting to 10 days, and if all shareholders agree in writing, the meeting can be held without a formal meeting or replaced with written resolutions (Commercial Code Articles 883, paragraph 3 and 4). Our Commercial Code provides that if all shareholders agree in writing regarding the purpose of the resolution, it is considered a written resolution, which is an advantage because shareholder meetings do not need to be held if all shareholders of a small company agree in writing regarding the purpose of the resolution. Stock Option Grant Stock options (stock purchase rights) are special rights granted to individuals who contribute to the establishment and growth of a company and are useful for strengthening the company's competitiveness (Commercial Code Article 171, paragraph 1). However, stock options cannot be granted solely through a board resolution and must be approved through a special resolution at a shareholder meeting. If this is overlooked, the stock options could be invalidated, so thorough preparation is necessary. Appointment, Dismissal, and Compensation of Directors Directors play a crucial role in the operation of a company, and the appointment and dismissal of directors must be made through a shareholder meeting (Commercial Code Articles 167, paragraph 1 and 169, paragraph 1), and director compensation must also be legally determined through shareholder approval (Commercial Code Article 173). Essential Agenda Items for Regular Shareholder Meetings Regular shareholder meetings must include essential agenda items such as approving financial statements and determining dividends, which are necessary for the operation of the company. It is important to thoroughly review the necessary documents and procedures in advance. Since the shareholder meeting deals with the company's important decisions, it is important to avoid overlooking legal risks. However, many companies struggle due to complex legal requirements and procedures. Issues such as mistakes in the meeting notification process or legal problems with important agendas can often occur during the preparation for shareholder meetings. If the timing, method, and minutes of the shareholder meeting notification do not strictly comply with the requirements of the Commercial Code, the meeting resolution may be deemed invalid or unnecessary disputes may arise among shareholders. Sensitive matters such as amendments to the articles of incorporation, capital reduction, and stock splits require careful legal review. These matters can have a significant impact on the company's operations and credibility, so it is advisable to seek professional legal advice. Startups and small businesses must prepare for shareholder meetings under the same Commercial Code regulations as large corporations. Companies preparing their first shareholder meeting or those with inexperienced teams may feel overwhelmed by the complex procedures and legal requirements. Law firm Veat deeply understands the legal difficulties that startups and small businesses face and provides legal services tailored to each company’s situation. From the notification of the shareholder meeting to the review of resolution items, experts from Law firm Veat provide detailed legal advice on key issues and carefully check for procedural problems to prevent risks in advance. In addition, Law firm Veat proposes the optimal solutions based on the experience accumulated through various company cases, particularly for key agenda items such as amending the articles of incorporation, approving financial statements, and reducing capital. Law firm Veat is a trusted legal partner that supports the growth of startups and small businesses, providing thorough preparation and legal review to ensure that the company’s important decision-making, shareholder meetings, are held smoothly. If you are concerned about shareholder meeting preparation, please contact Law firm Veat now. Thank you. Law firm Veat