Upgrading Rules on Treasury Stocks of Listed Companies: Key Trends and Implications
2024.02.13.
On January 30, the Financial Services Commission (the “FSC”) convened a meeting titled “Improvement of Rules on Treasury Stocks of Listed Companies.” At the meeting, the FSC announced a plan to improve the rules on treasury stocks of listed companies (the “Plan”), which was developed from discussions at a seminar last year on improving the rules on treasury stocks of listed companies, as well as feedback from various stakeholders, including the relevant industries, educational institutions, experts and relevant government agencies. The Plan is designed to address the misuse of treasury stocks as a means to reinforce the control of majority shareholders, thereby bolstering the value for shareholders. To implement the Plan, the FSC intends to undertake subsequent measures, such as proposing amendments to the Enforcement Decree of the Financial Investment Services and Capital Markets Act (the “Capital Markets Act”). Companies traded on domestic exchanges should therefore pay close attention to how these regulatory adjustments might affect their practices related to the acquisition, retention, and disposal of treasury stocks, along with their utilization for corporate restructuring.
.JPG)
..jpg)
_AD_3215355_1.JPEG)
