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SHARE EXCHANGE REFERS TO TRANSFER OF 100% ISSUED SHARES
Article 156 of the Company Act allows for share swap, and the Corporate Mergers and Acquisi-tions Act (CMAA) also contains provisions on share exchange. What difference there may be in the applicability of the two sets of provisions has been a subject of doubt.
In an interpretation issued in July 2003, the MOEA stated that, since the legislative purpose of the CMAA is to promote efficient corporate operation by facilitating restructuring through mergers and acquisitions, a share swap as re-ferred to in Article 156 of the Company Act means an exchange of "part" of a company's shares, whereas the relevant provisions of the CMAA are applicable only to a transfer of 100% of a company's issued shares.