[Consultation] Consultation regarding shareholder disputes surrounding the departure of a co-founder

The co-founder B of a well-known e-commerce startup, A Company, had worked diligently for several years to grow the company. As A Company got onto a certain trajectory, B wanted to leave A Company to start a new business. However, when B expressed his intention to leave, the representative director C of A Company presented a shareholder agreement that had been concluded several years ago. According to that agreement, B was obligated not to dispose of his shares externally when leaving.

Accordingly, B inquired with Law firm Veat about whether there was a way to leave without forcibly selling his shares. Law firm Veat reviewed all of the other shareholder agreements B had concluded and the investment agreements regarding A Company, and it was discovered that B had a co-sale right (Tag-Along) on the shares of other shareholders.

Also, this could soon become a major obstacle in A Company’s investor exit process, so it was ascertained that negotiations were possible regarding the content of the shareholder agreement B had concluded with C. B was able to make a rational decision about his future based on Law firm Veat’s advice, and eventually left to start the new business he desired.

Thank you.

Law firm Veat