Newsletter
MERGER AGREEMENTS NOT EFFECTIVE WITHOUT SHARE-HOLDERS' APPROVAL
In an interpretation dated 5 December 2000, the Ministry of Economic Affairs (MOEA) stated that under Article 316 Paragraph 1 of the Com-pany Law, a resolution to approve the dissolution or merger of a company must be supported by a majority of the voting rights represented at a meeting attended by shareholders representing at least three-quarters of the total issued shares; and under Article 317-1 Paragraph 2 of the Law, a copy of a merger agreement must be sent to shareholders together with the notice convening a meeting to approve the merger. Therefore, a merger agreement does not become effective until both the merger and the agreement are ap-proved by a shareholders' meeting.