Since the 2008 Revision Draft to Korean Commercial Code was presented to the National Assembly on October 21, 2008, there were two revisions in February and in May 2009 form the Draft. However, regarding stock system, no revision has been made yet. With respect to stocks, the current KCC stipulates the class stock and the special stocks such as redeemable stocks and convertible stocks. These limited stock systems have been criticized for not providing various types of class stocks available for the flexibility of equity financing and defense tactics against hostile merger and acquisitions. Especially with the globalization of the economy there have emerged the necessity of more competitive system of equity financing. The 2008 Revision Draft to Korean Commercial Code provides the general provision for the basis of class stocks(Draft §344), the class stock of profit sharing and distribution of remaining asset(Draft §344-2), the class stock of eliminating or restraining voting rights(Draft §344-3), the class stock of share transfer(Draft §344-4), the class stock of redemption(Draft §344-5), and the class stock of convertibility(Draft §344-6). However, it does not introduce the tracking stocks, the class stock of refusal rights, the class stock of electing directors, the class stock of disparate voting rights. In addition, the introduction of the poison pills and the warrants that might be available for defense tactics against hostile M&As were delayed due to the possibility of the abuse. This article reviews the contents and the problems of the KCC and major revisions to the KCC. It also analyzes the relevant laws of major countries regarding class stocks, and proposes the method for the improvements of class stock system of the KCC.

Since the 2008 Revision Draft to Korean Commercial Code was presented to the National Assembly on October 21, 2008, there were two revisions in February and in May 2009 form the Draft. However, regarding stock system, no revision has been made yet. With respect to stocks, the current KCC stipulates the class stock and the special stocks such as redeemable stocks and convertible stocks. These limited stock systems have been criticized for not providing various types of class stocks available for the flexibility of equity financing and defense tactics against hostile merger and acquisitions. Especially with the globalization of the economy there have emerged the necessity of more competitive system of equity financing. The 2008 Revision Draft to Korean Commercial Code provides the general provision for the basis of class stocks(Draft §344), the class stock of profit sharing and distribution of remaining asset(Draft §344-2), the class stock of eliminating or restraining voting rights(Draft §344-3), the class stock of share transfer(Draft §344-4), the class stock of redemption(Draft §344-5), and the class stock of convertibility(Draft §344-6). However, it does not introduce the tracking stocks, the class stock of refusal rights, the class stock of electing directors, the class stock of disparate voting rights. In addition, the introduction of the poison pills and the warrants that might be available for defense tactics against hostile M&As were delayed due to the possibility of the abuse. This article reviews the contents and the problems of the KCC and major revisions to the KCC. It also analyzes the relevant laws of major countries regarding class stocks, and proposes the method for the improvements of class stock system of the KCC.

, , , , , , , , ,

stock system, class stock, the class stock of profit sharing and distribution of remaining asset, the class stock of eliminating or restraining voting rights, the class stock of share transfer, the class stock of redemption, and the class stock of convertibility, the tracking stocks, the class stock of refusal rights, the class stock of electing