In practice, when investing in a minority stake of a company, sophisticated investors often incorporate certain provisions into investment agreements or shareholders’ agreement, including: (i) requirements for prior consultation, notification, and consent regarding key management decisions of the company and its major shareholders, and (ii) investor remedies in the event of breaches of these obligations, such as claims for damages or a penalties clause. This article examines the Korean Supreme Court’s decision on the validity of such provisions and key takeaways.

26F, Grand Central A, 14 Sejong-daero, Jung-gu, Seoul T. +82-2-6200-1600 E. master@jipyong.com

Subscribe | Unsubscribe

Seoul | Suncheon | Busan | Shanghai | Ho Chi Minh City | Hanoi | Jakarta | Phnom Penh | Vientiane | Yangon | Moscow | Budapest

This message was prepared for our clients for the purpose of providing real-time updates on general legal information only, and should not be relied on as legal advice or the opinion of the firm. Please contact the relevant authors for further information regarding an article's contents.

ⓒ JIPYONG LLC. ALL RIGHTS RESERVED.