Regulatory Alerts2024-12-24 | 83703Rule Changes on Treasury Stocks of Listed Companies Scheduled to Take Effect from December 31
The Financial Services Commission announced that revised regulations on treasury stocks of listed companies will take effect on December 31, 2024, following cabinet approval. The new rules prohibit allocating new shares to treasury stocks during corporate spin-offs and mergers to prevent major shareholders from bolstering their control. Additionally, the regulations strengthen disclosure requirements for holdings exceeding 5 percent and apply uniform standards to trust-based acquisitions to close loopholes and enhance protection for ordinary shareholders.
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