[Consultation] Review of Legal Issues Regarding Qualifying Stock Purchase Options

Law firm Veat took on a request from A, a mobile IT venture company, and conducted legal review regarding inquiries about restricted stock purchase options.

Law firm Veat meticulously reviewed the basis clauses for stock purchase options for employees and thoroughly examined the requirements for restricted stock purchase rights.

Furthermore, we examined whether all legitimate procedures that must be conducted by the company, such as shareholder meetings and board of directors meetings, were fully carried out, and provided legal review opinions regarding whether each employee had a restricted purchase option.

Specifically, we informed you that if a shareholder meeting was held in accordance with the “Special Act on Promotion of Venture Companies” and failed to include items that must be established by law when granting stock purchase rights, it became a non-existence requirement and was therefore void.

A restricted stock purchase option refers to a tax special privilege system that allows you not to be taxed on the difference between the market price per share and the exercise price if you meet certain requirements when granting stock purchase options under the “Special Act on Promotion of Venture Companies.”

A restricted stock purchase option is addressed in the “Companies Act,” “Tax Special Privilege Act,” and “Special Act on Promotion of Venture Companies,” and it is recommended to proceed with experienced attorneys considering various laws and internal regulations.

Law firm Veat provides legal advisory services to startups and various companies, similar to an in-house attorney, quickly and efficiently based on our experience of advising companies on various legal matters.

If you need legal advice on restricted stock purchase options or corporate legal matters, please contact Law firm Veat.

Thank you.
Law firm Veat