[Consulting] Stock option design and assignment contract drafting

Startups often find it difficult to provide high salaries and similar financial rewards to founding members and key talent. In these cases, stock options (stock purchase options) are a useful tool to attract key talent.

When stock options are granted to employees, the company may not be able to provide immediate large financial rewards, but can reward them in line with the company's growth, and employees can be motivated to contribute to the company’s growth. Such stock options affect the company's equity structure and are therefore regulated by the Commercial Code. However, for startups and venture companies, if certain conditions are met, they can grant stock options with more relaxed issuance requirements through the “Special Measures Act for the Promotion of Venture Companies” (hereinafter referred to as the Venture Company Act).

Law firm Veat advised A Company to grant stock options in compliance with the Commercial Code and the Venture Company Act, and prepared and provided the stock option grant agreement accordingly. A Company was able to grant stock options to the founding members in compliance with regulations through Veat’s advice and avoided the risk of the stock option grant agreement becoming invalid due to a violation of laws.

Thank you.

Law firm Veat