Newsletter
POST-MERGER COMPANY'S REPRESENTATIVE MAY INHERIT PRE-MERGER OFFICE
In an interpretation dated 14 May 1998, the Ministry of Economic Affairs stated that if a company is dissolved due to its participation in a merger, and a representative appointed by the company has been elected a director or super-visor of another company, then the surviving or newly incorporated post-merger company may appoint a representative to take over the office previously held by the dissolved company''s representative. If the dissolved company had itself been elected a director or supervisor of another company, then according to an MOEA interpretation issued on 19 November 1999, the surviving or newly incorporated post-merger company may take over the office previously held by the dissolved company, by registering a change in the name of the director or supervisor.
Based on the same reasoning, in an interpretation dated 19 January 2006 the MOEA stated that after a demerger, if the spun-off business ac-quired by a preexisting or newly incorporated company (a "demerger company") includes shares in another company, held as long-term investment, and a representative of the demerged company has been elected a director or super-visor of the invested company, then a represen-tative appointed by the demerger company may take over the office so held.