On April 15, 2021, Lawyer Gu Liping from our firm, as a startup mentor, was invited to the Shanghai Technology Innovation Center to deliver a course on "Legal Risk Control in Equity Financing."

The key to managing legal risks in equity financing lies in preventing and controlling potential future shareholder disputes. During the course, Lawyer Gu adopted a "reverse engineering" approach, using cases previously handled by our firm for "case-based teaching." This guided the participating entrepreneurs and executives to consider the risks and strategies involved in equity financing.

Preventing, controlling, and resolving shareholder disputes are the core legal aspects of equity financing design. A well-designed equity financing plan should focus on the "three pillars" of corporate governance when partners and investors enter the company and during subsequent operations: information disclosure, decision-making rules, and exit mechanisms.

Thirty-five entrepreneurs and executives from various industries in Shanghai attended the lecture. The session was highly interactive, and after the two-hour course, Lawyer Gu addressed additional questions related to equity financing from the participants.