Checkpoints for Successful Startup Management: Review of Written Consent

Law firm Veat performed a written consent review at the request of company A related to blockchain (hereinafter referred to as “the client”).

The client needed to obtain written consent from existing investors in the process of the client’s representative establishing an overseas corporation, and sought out Law firm Veat specializing in startups.

Law firm Veat's startup advisory team thoroughly reviewed the content and structure of the consent form and clearly stated the subject and scope of consent so that existing investors could clearly understand and consent.

In addition to the written consent review, Law firm Veat reviewed the legal risks of various businesses that could arise in the process of promoting new businesses. Specifically, it analyzed from various perspectives whether the promotion of new businesses or major business decisions could violate existing investment contracts, and recommended that the client receive consent in advance if necessary.

Through this, the client’s investors were able to clearly understand the purpose of the newly established overseas corporation and its impact and proceed with consent, while maintaining relationships with existing investors while pursuing new businesses, and minimizing potential legal risks.

Shareholder Meetings and Written Resolutions

Most joint-stock companies make major management decisions through shareholder meetings. A shareholder meeting is a place where shareholders exercise their voting rights on the company’s important matters, playing a very important role in company management.

Shareholder meetings are typically decided by a majority rule, and the resolution is only valid when the quorum and voting threshold are met. However, these procedures are designed to be suitable for large and complex companies, so they can be inefficient for small companies or startups with capital less than 1 billion KRW.

In these situations, a small joint-stock company can efficiently make decisions through a written resolution method, omitting the shareholder meeting when there is unanimous consent from all shareholders.

A written resolution is a method of replacing a shareholder meeting by having shareholders agree to pre-determined agenda items in writing, instead of holding an actual shareholder meeting, which has the advantage of allowing the company's decisions to be made more quickly.

However, in order to replace a shareholder meeting resolution through a written resolution, it is necessary to satisfy the legal requirements without missing any details. If this is not done properly, it may be invalid. Therefore, if the written resolution procedure is performed incorrectly or omitted, there may be grounds for future legal disputes, so these procedures must be conducted with advice from a legal professional with experience with startups and companies.

Law firm Veat has accumulated extensive experience in legal consultation related to startup growth and investment. In particular, Law firm Veat resolves various legal issues within the startup ecosystem and provides legal support to help startups grow stably.

Furthermore, Law firm Veat deeply understands the legal issues within this startup ecosystem and provides regular legal consultation services to help startups grow stably from an early stage.

If you need legal advice regarding legal issues that startups are concerned about, such as investment contracts, shareholder consent, and stock options, please contact Law firm Veat for safe growth.

Thank you.

Sincerely,

Law firm Veat