[Consultation] Drafting of Stock Transfer Agreement and Shareholders’ Agreement in consideration of the holding equity ratio of the major shareholder.

Veat provides legal services to startup A, which provides vehicle-related software services. We drafted a stock transfer agreement and shareholders’ agreement for them.

Startup A, which had received Seed Round investment, requested that Veat draft a stock transfer agreement and shareholders’ agreement, considering the maximum percentage of shares held by the majority shareholder for future stable investment raising.

Accordingly, Veat adjusted the terms to ensure both parties were satisfied, specifically regarding the disposal of one share and the distribution of profits upon disposal, while also incorporating this into the shareholders’ agreement.

Furthermore, we included provisions relating to stock transfer agreement, including restrictions on the majority shareholder’s stock disposal, a request for the minority shareholder’s stock disposal, compensation for the minority shareholder upon stock disposal, a confidentiality obligation and a breach penalty.

Reflecting these aspects, we drafted a stock transfer agreement.

Because shareholders’ shareholding ratio and the company’s control structure are crucial for corporate governance and also essential for future stable investment raising, it is necessary to consult with a professional regarding legal risks when a stock transfer agreement, where the shareholding ratio may vary, is undertaken.

Veat is a legal partner that has worked with many startups and companies, providing legal advice on stock transfer agreements, shareholders’ agreements, and shareholders’ agreements for stable investment raising and company operations.

If you need a stock transfer agreement, shareholders’ agreement, or shareholders’ agreement drafted and reviewed, please contact Veat at any time.

Thank you.
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