Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025

• Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.

• The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs.

• This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders' rights.

Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process. This change in the use of treasury shares regulation has been in discussion for more than a year and the change is finally taking place at the end of this year. The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs. This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders' rights.