The Privatization of Government-Owned Enterprises Act Article 17

Where a government-owned enterprise, which is of public utility or national defense nature, is privatized, the competent authority in charge of the enterprises may order the enterprise to issue preferred shares for subscription at par value by the competent authority in charge of the enterprises, entitling it to exercise the rights set forth in paragraph 2 within a specific period of time.An enterprise which issues preferred shares shall obtain consent from the shareholder of the preferred shares prior to conducting the following acts:1. Changing the name of the enterprise;2. Changing its business scope;3. Transferring its business or assets in whole or in substantial part.Any resolution adopted by the enterprise in violation of the preceding paragraph shall be null and void.The preferred shares issued according to this Article shall not be transferred; provided, however, that after the expiration of the specific period of time provided in paragraph 1, such preferred shares shall be redeemed at par value and cancelled by the enterprise.