[Consulting] Drafting of stock purchase agreement and representation of transfer procedure

A company, due to several rounds of investment and a long period of business operations, has approximately 50 shareholders, and the shareholder agreements between these shareholders were concluded haphazardly, making a shareholder cleanup necessary. Therefore, A company decided to purchase shares from some shareholders to carry out the shareholder cleanup, and six individual shareholders had to enter into contracts to sell all of their shares to the investor.

Law firm Veat, after the six individual shareholders selling shares had divested the obligations arising from the existing shareholder agreements, presented a transaction structure allowing for stock acquisition, also considering the penalties and transfer tax issues arising from the sale of shares. Furthermore, as the stock acquisition consideration paid during this process was not insignificant, it also acted as an escrow procedure to temporarily hold the acquisition consideration.

As a result, A company was able to successfully complete the shareholder cleanup, and the individual shareholders were able to exit successfully by selling their shares at a higher price than their initial investment.

Thank you.

Law firm Veat