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Part 1 · General provisions  ›  Division 2 · Merger by absorption › Section 35

Designation of unknown stockholders; suspension of voting right

Inasmuch as the law stipulates that the acquiring legal entity must identify the owners of its shares, those of the stockholders of a stock corporation being acquired, or of a public partly limited partnership being acquired, who are unknown are to be designated in the merger agreement in applications for entry in a register, or when they are entered in a list of holders of shares, by setting out the aggregate portion of the company’s capital stock allocable to them and the shares allocable to them following the merger; designating them in this form is permissible only for holders of shares whose shares, taken together, do not exceed one twentieth of the capital stock of the company being acquired. Where such holders of shares become known at a later time, the register entries or lists are to be corrected ex officio. Until such point in time, the voting right attaching to the corresponding shares in the acquiring legal entity may not be exercised.

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