[Venture Enterprise Act] Introduction of Multiple Voting Rights Stock for Unlisted Venture Companies

(Image source: Ministry of SMEs and Venture Business, Press release regarding the multiple voting rights of non-listed venture companies)

The Ministry of SMEs and Venture Business announced that a revised version of the “Act on Special Measures for the Promotion of Venture Companies” (hereinafter referred to as the Venture Companies Act) was approved at the National Policy Committee meeting on December 22, 2020 (Wednesday).

Multiple voting rights stock (hereinafter referred to as “multiple voting rights”) is currently impossible to issue in Korea under the current law, as it is stock with multiple voting rights.

This revision of the Venture Companies Act was driven to establish a basis for issuing multiple voting rights, allowing non-listed venture companies to raise large-scale investments and grow into unicorn companies without equity dilution.

The Ministry of SMEs and Venture Business plans to submit the revised Venture Companies Act to the National Assembly this year and will actively work to pass the revised version. It is necessary to pay attention to whether the revised version will pass in the plenary session.

Please refer to the Etnews article for related information. If you need legal advice on the Act on Special Measures for the Promotion of Venture Companies or investment-related laws, please contact Law Firm Veat.

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