LPL » Topics » Article 42-2. (Redemption of Shares)
This excerpt taken from the LPL 20-F filed Apr 11, 2005.
Article 42-2. (Redemption of Shares)
The Company may redeem the shares of the Company within the limit of profit to be paid to its shareholders as dividends by a resolution of the Board of Directors.
In the case of the redemption of shares under the provision in Paragraph (1) above, the Board of Directors shall determine the following matters:
Class and total number of shares subject to redemption;
Total value of shares to be acquired for redemption; and
Period during which the shares will be acquired. In any case, the
period shall end before the date of the first ordinary General Meeting of Shareholders after the relevant resolution of the Board of Directors.
In the case where the Company acquires treasury shares for redemption under the provision in Paragraph (1) above, the acquisition shall be subject to the following standards:
The Company shall follow the methods under the Article 189-2, Paragraph (1) of the SEA. If the acquisition is made in accordance with the method under Item 1 of the same provision,
the acquisition period and the method thereof shall meet the standards set forth in the Presidential Decree under the SEA;
The amount of the acquisition for redemption shall not be more than the amount determined by the Presidential Decree under the SEA within the limit of distributable income under
Article 462, Paragraph (1) of the Commercial Code at the end of the relevant fiscal year.
In the case where the Company redeemed its shares in accordance with the provision in Paragraph (1) above, the Company shall report the matters set forth in Paragraph (2) above and
the purpose of the redemption at the first ordinary General Meeting of Shareholders after the relevant resolution of the Board of Directors.