A public company carrying out issuance of new shares as stock dividends or capital reduction shall comply with the following provisions:
A public company that carries out issuance of new shares as stock dividends or capital reduction and makes delivery by the book-entry method shall comply with regulations pertaining to centralized securities depository enterprises, and need not print physical securities.
- It shall comply with Article 273 of the Company Act within 30 days of delivery of the notification of effective registration.
- Within 30 days of receiving the letter of approval of amendment registration for issuance of new shares from the Ministry of Economic Affairs, the company shall have the securities certified in accordance with the Regulations Governing Certification of Corporate Stock and Bond Issues by Public Companies, deliver the securities to the subscribers, and make a public announcement prior to the delivery. However, if physical securities are not printed, the requirement of certification in accordance with the Regulations Governing Certification of Corporate Stock and Bond Issues by Public Companies does not apply.