Establishment of Special Committee for Mergers and Acquisitions of Public Issuing Companies

The amendments to the Corporate Mergers and Acquisitions Act ("M&A Act") were promulgated on 8 July 2015 and will take effect on 8 January 2016. To ensure that all the shareholders obtain adequate and appropriate information for resolving on a merger or acquisition transaction, according to Article 6 of the M&A Act, a public issuing company, before the Board of Directors adopts the resolution for such a transaction, should establish a special committee to review the fairness and reasonableness of the transaction and to report the result to the Board of Directors or the shareholders meeting, if applicable. ... More