[Consultation] What is the response plan for an investment company when a company it has invested in intentionally closes down?

The investor, Esa, inquired with Law firm Veat regarding a response plan in case Asa, the non-investing party, deliberately closes down.

Asa deliberately intended to close down the company due to the difficult business environment. As a result, Esa requested a legal review regarding the actions that could be taken based on the investment contract if Asa closes down.

In response, Law firm Veat reviewed the investment contract between Esa and Asa, examining Esa’s right of stock purchase, liquidated damages, and claims for damages, and provided legal opinions.

Law firm Veat provides advice related to due diligence, investment contract drafting and review, and various investment firms such as accelerators and venture capital firms, based on its diverse experience in the startup ecosystem. It also provides advice related to fund solicitation and reporting and management of non-investing companies. If you need legal advice in relation to these matters, please contact Law firm Veat.

Thank you.