소수주식의 강제매수제도
Freeze-out of Minority Shareholders under the Draft New Commercial Code

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서울대학교 법학연구소
법학, Vol.50 No.1, pp. 321-350
강제매수주식매수청구권현금합병간이합병차입매수cash-out mergercontrolling shareholdercommercial code가치평가corporate governance
The draft new Korean Commercial Code includes the mechanism for acquisition

of dissenting minorities. The compulsory buy-out threshold is set at 95%

level. The proposed provisions below (translation by Lee & Ko, Korea, and the

author) are general ones that allow a controlling shareholder to purchase

compulsorily the shares owned by a minority, no matter whether the majority

was acquired in a takeover bid or not. The minorities also have the right to be

bought out at the same level. However, there is no sophisticated mechanism for

determination of a fair price than the current one applicable to the shareholders’

appraisal claims. Also, the Korean law does neither know the concept of the

“entire fairness” as developed in Singer v. Magnavox Co., 380 A.2d 969 (Del.

1977) nor the fiduciary duty of majority shareholders to minority shareholders.

The new squeezeout institution may work properly if and only if the Korean

courts contemporaneously develop the fairness standard applicable to valuation as

well as procedure and introduce the fiduciary duty of major shareholders to

minority shareholders. This is more so because the draft bill also allows the

cash-out merger transaction in Article 523, No.4.

Article 360-24 (Controlling Shareholder’s Right to Request for Sale)

(1) The shareholder who possesses 95% or more of the total issued and

outstanding shares of a company under his own account (hereinafter,

“Controlling Shareholder”) may request the other shareholder the sale

of the shares possessed by such other shareholder (hereinafter, “Mino-...
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College of Law/Law School (법과대학/대학원)The Law Research Institute (법학연구소) 법학법학 Volume 50, Number 1/4 (2009)
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