(1) In cases where the transfer of shares requires the approval of the board of directors, a shareholder intending to transfer his/her shares may request in writing the company to approve the transfer, by specifying the intended transferee and the class and number of the shares to be transferred.
(2) A company shall give a written notice to a shareholder of whether or not it approves the transfer of shares, within one month of the request under paragraph (1).
(3) If a company fails to notify the shareholder of its refusal within the period set in paragraph (2), the board of directors shall be deemed to have approved the transfer of shares.
(4) A shareholder who receives a notice of the refusal to approve the transfer as referred to in paragraph (2) may request the company to designate the alternative transferee or to purchase the shares, within 20 days of receipt of the notice.[This Article Newly Inserted by Act No. 5053, Dec. 29, 1995]