Material Transactions Under New Capital Markets System

Over the last year, the Capital Markets Board (the "CMB") has issued several communiques in order to implement the secondary legislation of the Capital Markets Law (the "CML")¹. One of the important pieces of legislation is the Communiqué on the Common Principles Regarding Material Transactions and Exit Rights (the "Communiqué")². The Communiqué defines what material transactions are and the materiality criteria applied to these transactions. It also explains the rules on how corporate resolutions on such material transactions must be taken. Furthermore, the exercise of exit rights is covered in detail by the Communiqué. This bulletin will only focus on the material transactions and materiality criteria and we will elaborate on the exit rights in our bulletin in April.