Companies Law

Acquiring Interests or Shares in Holding Companies 1. A subsidiary company may not acquire interests or shares in a holding company. Any action resulting in the transfer of the ownership of interests or shares from a holding company to a subsidiary company shall be deemed null and void. 2. If a subsidiary company owns interests or shares in a holding company prior to becoming a subsidiary thereof, the following shall be observed: a) The subsidiary company may not make decisions in the holding company or vote on such decisions. b) The subsidiary company shall dispose of such interests or shares within 12 months from the date it becomes a subsidiary to the holding company. The Competent Authority may extend such period. 3. The provisions of paragraphs (1) and (2) of this Article shall not apply to persons licensed under the Capital Market Law and its Implementing Regulations if their ownership of interests or shares in a holding company falls within the scope of their regular activities. The Competent Authority may specify other cases that are excluded from the provision of this Article. Companies Law