[Investment] Legal Review of Common Stock Investment Agreement from the Investor’s Perspective

Law firm Veat undertook legal review of share subscription agreements for early-stage game-related startups.

Law firm Veat meticulously reviewed share subscription agreements from the investor’s perspective and proposed reasonable amendments regarding the following key matters:

Law firm Veat proposed reducing the scope of statements and guarantees, and the scope of indemnities to minimize unnecessary joint and several liability and clearly define the investor’s liability. Furthermore, to guarantee the investor’s managerial freedom and appropriately protect the investor’s rights, it restricted the basis for consent regarding managerial matters.

Specifically, Law firm Veat limited the scope of the stock purchase right and ensured that the investor could guarantee the sale price in the investor’s sell-down rights clause, while maintaining fair trading between the two parties.

Share subscription agreements are crucial tools for establishing the core foundation for business success, and are important documents clarifying the rights and obligations of the investor and the invested party, as well as responses to unforeseen circumstances between them.

Notably, share subscription agreements can also determine the success or failure of an investment, and may contain very sensitive issues from the investor’s perspective.

Law firm Veat fairly adjusted the rights and obligations of both the investor and the invested party in the review of share subscription agreements, while extracting the optimal conditions from the investor’s perspective.

Law firm Veat possesses extensive experience providing legal advice on investment-related matters to various companies, including being in the top 5 in the ‘2022 Annual Bloomberg M&A League Table’ and a ‘Finalist’ in the ‘Korea Deal Firm’ category for two consecutive years at the ‘ALB Korea Award 2022’ , thereby establishing itself as a leading firm in investment and M&A legal advisory.

If you require professional legal advice on drafting and reviewing share subscription agreements, please contact Law firm Veat.

Thank you.

Law firm Veat.