[Consultation] Review whether LP subscription involves self-dealing among directors etc.

Law firm Veat undertook a legal review for A Investment’s request regarding LP investment involving review of self-dealing of directors under the Commercial Act.

A Investment inquired Law firm Veat for legal review concerning whether Director B should obtain approval from the board of directors when investing in a foreign fund operated by C Company, a company in which Director B is a director, as self-dealing of directors under the Commercial Act.

Law firm Veat conducted a legal review to determine whether the case falls under self-dealing of directors based on Article 398 of the Commercial Act concerning transactions between directors and companies. It provided guidance regarding the possibility of such occurrence.

Article 398 of the Commercial Act stipulates that a director acting as a director and a company must disclose material facts regarding the transaction to the board of directors and obtain its approval prior to engaging in transactions with the company, either in their own name or on behalf of a third party, and that the approval of the board of directors must be by three-fifths of its members, and that the contents and procedures of the transaction must be fair.

Law firm Veat possesses various legal advisory cases related to venture capital (VC) operations, LP investment, foreign fund investment and provides efficient and prompt legal advice based on Law firm Veat’s expertise.

If you require legal advice regarding venture capital (VC) operations, LP investment, foreign fund investment, self-dealing of directors, please contact Law firm Veat.

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