There are five members on the board, three from the management, one appointed by ABC, and Investor S.All shareholders recognized ABC's contribution to the company so no director or shareholder objected to giving ABC preferential terms over external investors. However, the protective rights were so in favor of ABC that it could potentially harm the value of the other shareholders. In addition, the redemption right with an increasing interest rate could put a significant burden on the company. Although these protective rights were only exercisable if the company failed to complete the external round within nine months, the probability of which was small, the impacts on other shareholders if these rights were exercised would be material