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Contrary to the Former Communiqué, traded and non-traded compa-
nies are not subject to different time limits.
The controlling shareholder shall deposit the share purchase
amount to the company account, at the latest within three business days
following the notification of the sell-out right by the company to itself,
and the company shall transfer this amount the second succeeding
business day to conclude the share transfer.
The Former Communiqué regulated that the controlling share-
holder could also use its squeeze-out right within the same three-month
period, the lapse of which would result in the lapse of this right.
Nevertheless, the Communiqué abandoned this approach. Accordingly,
the controlling shareholder who wishes to exercise its squeeze-out
right must do so within three business days following the lapse of the
three-month period during which sell-out rights may be exercised.
The shareholder who wishes to exercise its squeeze-out right shall
apply to the company, provide information on itself, and on the share
price, submit a bank letter of guarantee, or block an amount in a pri-
vate account to be used for the exercise of this right. The determination
of the price to be paid is assessed in detail below.
The board of directors of the company shall adopt a resolution to
cancel the shares of the squeezed-out minority, and issue new shares to
replace the cancelled ones, and apply to the CMB for approval of the
issuance certificate. The company must also apply for delisting from
the exchange market. Following the completion of the procedures
before the Central Registration Agency (“CRA”) that are explained
below, the company shall be delisted from the exchange market and
excluded from the scope of the CML. This transaction shall not give
rise to an exit right.
Within three business days as of the CMB’s approval, the control-
ling shareholder must deposit the squeeze-out price in the company’s
account. The private capital increase of the company shall be made
through deduction from the reserves blocked by the controlling share-
holder. Within one business day following the deposit of the squeeze-
out price by the controlling shareholder, the company shall apply to the
CRA for the transfer of this amount to the accounts of the squeezed-
out shareholders, the cancellation of their shares and the transfer of
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