[Consulting] Case of advising on an agreement between a company and a departing director

Law firm Veat received a request from executive A, who is about to resign, and drafted and provided a settlement agreement between the company and the retiring executive.

The client, who had worked as a corporate executive at B Company for decades, requested legal advice to prepare for potential disputes arising from wanting to acquire shares or cash equivalent to 1% of the total issued shares of B Company after its listing, from corporate executive C.

After reviewing the request in various legal aspects, Veat considered that the client would not pay any separate acquisition consideration for the shares or cash, and therefore, it would be appropriate to draft the document as a gift contract granting the right to receive shares or cash equivalent to 1% of the market capitalization of B Company or another entity actually listed at the time of listing. We then established the direction of the process, added clauses that align with the client's objectives, and completed the gift contract after thoroughly explaining it to the client.

Law firm Veat was able to help prevent future disputes by providing this gift contract, which clearly defines all rights and obligations between the company and the executive upon resignation.

Thank you.

From Law firm Veat