Newsletter-21

232 NEWSLETTER 2016 - The information as mentioned in the seventh paragraph, hereinabove, containing the purpose of the acquisition, sources used, and summary of acquisitions, will also be provided by the board of directors to shareholders in the next meeting of the general assembly. Situations where Buy-Back and Sale Transactions Cannot Be Executed Buy-back or sale transactions cannot be executed upon the exist- ence of insider information disclosed by the corporation. Corporations and/or their subsidiaries are not allowed to execute any acquisition or disposal transaction during the period from the date of decision of the general assembly pertaining to capital increases by the corporations in the share capital system, or from the date of deci- sion of the board of directors pertaining to capital increases by the corporations in the registered capital system, to the date of completion of capital increase transactions. Implementation of the Share Buy-Back Program Pursuant to Art. 7 of the Communiqué, the duration of a buy-back program approved by the general assembly is a maximum of three years for corporations whose shares are traded on the stock exchange. While Art. 379 of the TCC determined a maximum of five years of an authorization period - this period is foreseen to be shorter in the Communiqué. As per the relevant articles of the Communiqué, the said program will remain in force throughout the maximum duration if no specific period is shown in the buy-back program. Pursuant to Art. 9/2 of the Communiqué, buy-back shares of corporations whose shares are traded on the stock exchange should be tradable on the exchange, and acquisition transactions should be executed only in the exchange’s market where the corporation’s shares are traded. Thus, it appears that the non-tradable shares held by the controlling shareholder must be converted to the tradable type in order to be subject to the share buy-back. A question remains as to whether the CMB will make it possible to buy back controlling shareholder’s