Partners' resignation of registered director, determination of employee status, legal review.

Law firm Veat conducted a legal review regarding the resignation of a registered director upon request from a software development startup.

Law firm Veat's startup advisory team thoroughly reviewed whether a registered director, acting as a business partner, could be recognized as an employee upon resignation.

Because whether a registered director is recognized as an employee affects the obligation to pay retirement benefits, Law firm Veat's startup advisory team judged the registered director's employee status based on the 「Labor Standards Act」 and clearly presented their legal rights and obligations accordingly.

Regarding the registered director’s retirement benefits, we provided guidance after comprehensively reviewing the shareholder meeting procedures stipulated in the Commercial Law and the company's internal regulations, the articles of incorporation, and also provided detailed instructions on areas where legal risks could arise.

Furthermore, according to the Commercial Law, the board of directors can be composed of three or more people. We clearly provided guidance on inquiries regarding decision-making related to the inability to form a board of directors due to the resignation of a registered director, helping the company to decide on possible options and make efficient decisions.

In addition, considering the fact that they are business partners, we explained the necessary legal requirements and procedures related to the stock conversion process in detail.

What is an employee?

Article 2, Paragraph 1, Sub-paragraph 2 of the 「Labor Standards Act」 defines an employee as a person who provides labor to a business or workplace for the purpose of receiving wages, regardless of the type of occupation.

According to jurisprudence, whether a person is an employee under the Labor Standards Act depends not on the form of the contract, but on whether, in substance, they provided labor to the business or workplace in a subordinate relationship for the purpose of receiving wages (September 26, 2009, verdict, 2002Da64681).

Therefore, to determine whether a registered director is an employee under the Labor Standards Act and is eligible for retirement benefits, it is important to seek the help of a legal expert and conduct a review from various angles.

Law firm Veat helps by clearly analyzing difficult personnel issues and presenting the best solution.

Law firm Veat is a law firm specializing in startup advisory services, working with the Next Challenge Foundation, a global accelerator, focusing on nurturing and legal support for startups and providing various startups with diverse assistance. We also clearly explained the necessary legal procedures and requirements for startups to introduce personnel systems, so that startups can introduce personnel systems without legal problems.

Law firm Veat helps startup executives and directors who are worried about legal risks to operate their businesses with peace of mind through professional and reliable legal advice.

If you are concerned about regular corporate legal issues, please contact Law firm Veat.

Thank you.
Law firm Veat.