CNPLaw LLP advised a shareholder on his divestment of majority interests

Deals and cases

 

CNPLaw LLP advised a shareholder on his divestment of majority interests


Date Published: 30 November 2020 


The CNP team comprises: Ken Chia and Pearlene Han.




CNPLaw LLP (“CNP”) advised a selling shareholder on the divestment of his entire majority shareholding in a Singapore company (in the business of manufacturing and distributing wooden pallets, crates, solder and packaging products) to the minority shareholder.

The client shared the following comment about the team, “I would very much like to convey my many thanks and appreciation to the team’s hard work, especially to Mr Ken Chia for being so helpful and patient to make the deal happen.”

 

CNPLaw’s Corporate Advisory Lawyers

Ken Chia Legal Partner at CNPLaw LLP image

Partner

Ken heads the Corporate advisory team in the firm and has an international focus in his corporate and M&A work and worked in business development positions with various subsidiaries of the Hang Lung Group in Shanghai and with Informa plc in Singapore.




Pearlene
Associate

Pearlene is an associate in the Corporate Advisory Practice Group. Prior to joining the firm, she practised in a mid-sized firm in the areas of capital markets, mergers & acquisitions, ship finance and corporate advisory. She has acted for clients from different industries ranging from healthcare to agriculture.



Every business involves an amalgam of various stakeholders, such as investors, shareholders and directors. Ideally, each of these stakeholders should have a common vision of what is best for the company. However, this is rarely the case when individual interests are factored into the equation.

Stakeholder conflicts (regarding issues such as breaches of fiduciary dutiesderivative actionsshareholder oppressionmanagement deadlocksmanagement compensationdividend payments and buy-outs) can be a thorny issue and can leave a company crippled if not addressed promptly.

Given the diversity of interests at play, we appreciate that a multi-faceted approach is usually the most cost-efficient method of resolving stakeholder conflicts. Therefore, we provide clients with ready access to an integrated team of lawyers (combining the experience of our corporate, dispute resolution and employment law practices where applicable) who will effectively engage the relevant stakeholders in discussions on how best to resolve their differences amicably.

More often than not, clients are able to avoid costly protracted court proceedings and resolve stakeholder conflicts with discretion and expediency.





Each M&A deal entails the confluence of multiple legal disciplines. That is why we take great care when assembling a team for each deal, ensuring that there is an optimal mix of specialisation in the clients’ identified areas of concern, such as taxemployment and intellectual property, and necessary industry-specific experience.

We provide support to our clients at every stage of the deal. We will be there at the beginning of the process, helping to facilitate the negotiations between the parties and advising on the structure of the transaction. Once the parties have reached a consensus, we meticulously prepare the necessary documentation. Recognising that M&A deals are often the first page of a new chapter for the parties involved, we also provide post-transaction support to ensure a smooth transition such as the preparation of shareholder agreementsemployment agreements, and other relevant commercial documentation.