(1) If a company issues different classes of shares, the articles of incorporation may provide that a shareholder may request that shares subscribed to by the shareholder shall be converted into shares of another class. In such cases, the conditions for conversion, the period within which the conversion may be requested, and the number and particulars as to the shares to be issued as a result of the conversion shall be prescribed.
(2) In cases where a company issues different classes of shares, the company may determine in the articles of incorporation that it may convert the shares subscribed to by the shareholder into shares of another class upon occurrence of certain event. In such cases, the reason of conversion, conditions for conversion, the period within which the conversion may be requested, and the number and particulars as to the shares to be issued as a result of the conversion shall be prescribed.
(3) In cases falling under paragraph (2), the board of directors shall separately notify the following matters to the shareholders of the relevant shares and to the interest-holders stated in the register of shareholders: Provided, That the said notification may be substituted by public notification:
1. The shares to be converted;
2. A statement to the effect that the share certificates should be submitted to the company within a prescribed period of no less than two weeks;
3. A statement to the effect that the share certificates will become invalidated if they are not submitted to the company within the said period.
(4) Out of the number of shares of different classes under Article 344 (2), the number of shares to be newly issued shall be reserved, with respect to their issuance, during the period for requesting the conversion or the period of conversion.[This Article Wholly Amended by Act No. 10600, Apr. 14, 2011]