In the beginning of 2017 Labimex Ltd. hired IV & Co Law Firm to make a change of its corporate structure since they desired to transform the limited liability company into a joint stock company. The client wanted to introduce a new bonus system that would gratify some of its key employees with part of the shares of the company if they achieved certain prior set goals. Our task was to prepare all legal documents related to the transformation having in mind the interests of the major shareholder should stay protected. Our legal team meticulously reviewed all possible corporate issues that can come up, and afterwards drafted an agreement which regulated the relationships between the shareholders. We included restrictions on transferring shares, pre-emption rights and rights of first refusal in relation to any shares issued by the company as well as “tag-along” and “drag-along – право на извличане” rights. Furthermore, we advised the client on all transformation related issues including but not limited to its relations with bank and lease institutions as well as the tax authorities.
The transformation is now completed in the shortest possible terms.