Newsletter
REVERSION TO NON-PUBLIC-ISSUING STATUS IS IMMEDIATE
There have been frequent disputes in practice over whether the provisions for a public-issuing company, or those for a non-public-issuing company, should be applied to a previously public-issuing company after the company's public-issuing status has been revoked through the relevant procedures, but before its Articles of Incorporation have been amended accordingly.
To address this issue, in interpretations dated 15 February and 22 April 2005, the Ministry of Economic Affairs stated that the provisions of the Company Act as to the timing and procedures for convening a shareholders' meeting are man-datory requirements. Therefore, as soon as a company's public-issuing status has been re-voked, even if its Articles of Incorporation have not yet been amended, it is no longer a pub-lic-issuing company, and hence it must comply with the provisions for a non-public-issuing company.