[Consultation] Shareholder meeting, articles of incorporation etc. – check items before stock option grant.

Law firm Veat conducted a comprehensive legal review to ensure that stock options are properly granted, including shareholder meetings, articles of association, and certificate of all registered items.

A Co., which manufactures and sells pet-related devices, requested a legal review to determine whether stock options (stock purchase rights) were properly granted. Law firm Veat reviewed A Co.’s stock option granting status and provided guidance on the necessary requirements under the “Companies Act” and the “Special Act for the Promotion of Venture Companies” (Venture Companies Act), including the preparation of a shareholder meeting resolution, and the necessity of aligning the total number of shares to be issued with the articles of association and certificate of all registered items.

Stock options are strictly regulated under the Companies Act and the Venture Companies Act, and if not granted properly, the stock option granting itself may become ineffective. Given the 2022 February amendment to the Venture Companies Act, which has diversified the methods for determining stock option exercise prices, we recommend that companies adopting the stock option system seek professional assistance to operate an effective and efficient stock option granting system.

Law firm Veat provides comprehensive legal counsel on all aspects of stock option granting, from reviewing shareholder meetings and articles of association to drafting stock option agreements. If you need legal advice regarding stock options, please feel free to contact Law firm Veat at any time.

Thank you.
Law firm Veat