Investment Legal Advisory Team's Analysis of Core Expert on Stock Acquisition and Shareholder Agreements

Law firm Veat provides services for the client, a company that receives a mandate from Veat’s Law Firm to draft and provide stock transfer agreements and shareholder agreements.

The client, a domestic company, intends to acquire a majority stake by taking over the shares of a foreign company, and in this process, a stock transfer agreement is needed with the seller.

Veat Law Firm’s Investment Advisory Team clearly defines rights and obligations between the parties in the agreement and potential issues that may arise in the future.

Furthermore, the Investment Advisory Team drafted a shareholder agreement to ensure the client’s rights as the majority shareholder, considering the investor’s position and, to safeguard the client’s interests, specified various items including pre-emptive rights, restrictions on subsidiary operations, employment obligations, and penalties, ensuring the firm’s stable operation.

Strategic partnership formation between companies, key means such as stock transfer agreements and shareholder agreements

Stock acquisition is one of the key means of forming strategic partnerships between companies in business environments. In particular, when a domestic company acquires shares of a foreign company, the complexity increases. At this time, the stock transfer agreement, which is drafted, is a legal document specifying all matters related to the transfer and acquisition of stocks. The drafting of these stock transfer agreements and shareholder agreements requires professional legal knowledge and experience. Law firm Veat provides the best legal services based on its extensive experience in complex business environments.

Know-how of complex investment legal advisory, Veat’s Investment Advisory Team

Veat Law Firm’s Investment Advisory Team handled cases involving a complex relationship with multiple investors. In the case of startup A, there were many investors, and the conditions of each shareholder agreement differed. Provisions such as voting rights on board appointments, rights to appoint directors, stock option grants, and penalty measures in case of breach of contract were all set differently. This created the risk of conflicts of interest.

Veat Law Firm’s Investment Advisory Team, despite being a complex case considering complicated investment conditions and the circumstances of a startup, possesses the know-how necessary to solve legal issues, drafted amendments minimizing differences between investment terms with a specialized investment attorney and adjusting them to suit the realities of domestic investment, and with meticulous attention, excluding unfavorable conditions for the client, Startup A’s position was prioritized.

Law firm Veat recorded 2nd place based on total transaction volume according to the league table ranking of M&A legal advisory services in the first quarter of 2023 by Bloomberg, and was a ‘Finalist’ in the ‘Korea Deal Firm’ category for 2 consecutive years in ‘ALB Korea Award 2022’, proving itself as a leader in investment and M&A legal advisory.

If you need professional legal advice on stock transfer agreements or shareholder agreements, please contact Law firm Veat at any time.

Thank you.

Veat Law Firm