Business acquisition, employment succession, and core legal risk management.

Law firm Veat reviewed the business transfer contract for business acquisition by small and medium-sized enterprise A (hereinafter referred to as "the client").

Law firm Veat specifically confirmed the scope and list of assets being transferred. In the business transfer process, the assets assumed by the transferee may include not only tangible assets but also intangible assets such as customer data, brands, and licenses. In particular, if the liabilities of the transferor are included in the scope of the transferred assets, it is necessary to clearly define the scope and conditions of their acquisition to prevent unexpected legal and financial liabilities.

Furthermore, Law firm Veat reviewed the obligations that the transferee must comply with under the “Personal Information Protection Act” when transferring personal information, and assisted the client in revising its existing terms of service and complying with the procedures stipulated in relevant laws and the Fair Trade Commission’s guidelines.

Business Transfer and Employment Succession

Business transfer is a process in which a company transfers a specific business division or the entire business to another company, and the transferee acquires the assets, liabilities, contracts, and employees of that business. This enables strategic changes in the company through restructuring, business expansion, or sales.

Business transfer of small and medium-sized enterprises plays an important role in the survival and growth of the company. Therefore, when reviewing a business transfer contract, it is necessary to clearly define the scope and list of transferred assets, and to gain sufficient understanding and agreement on the issue of debt acquisition and employment succession.

According to the “Commercial Code,” upon completion of the business transfer, the employment relationship of the transferor company is comprehensively succeeded, and the transferee has an obligation to succeed employment without changes in employment conditions for the transferor’s employees. However, if the transferor or transferee does not want the employment succession of a specific employee, they must fully explain and obtain consent from the employee regarding the issue of employment succession. Failure to follow these procedures may result in legal disputes.

Furthermore, regarding the payment of retirement pay, the transferee must accurately confirm through a legal expert whether to apply the period worked in the transferor’s workplace or to consider the length of service in the transferee’s workplace and pay accordingly.

Law firm Veat provides professional advice on all legal issues related to business transfer, helps to proceed through complex procedures efficiently, and strives to support clients to achieve stable and successful business transfer.

If you are considering a business transfer, we recommend seeking assistance from Law firm Veat to minimize legal risks.

Thank you.
Law firm Veat