Newsletter
PURCHASE OF DISSENTING SHAREHOLDERS' SHARES
In an interpretation dated 4 June 2001, the MOEA stated that where the shares owned by dissenting shareholders are bought back pursuant to a company merger, the provisions of Article 167 Paragraph 2 of the Company Law should not apply, so that such shares need not be sold within six months at the prevailing market price.
According to another MOEA's interpretation dated 7 March 2000, a merger agreement may stipulate that shares bought back by the dissolved company from dissenting shareholders who ex-ercise their rights under Article 317 of the Company Law, will be cancelled on the merger closing date.