The company merger system which is the most perfect form of enterprise concentrations
has been used for accomplishing various economic purposes, such as avoidance of
competition, rationalization of managements, saving of business expenses, extension...
The company merger system which is the most perfect form of enterprise concentrations
has been used for accomplishing various economic purposes, such as avoidance of
competition, rationalization of managements, saving of business expenses, extension of
business, monopoly of market and protection of domestic enterprise from foreign investment enterprise, etc. Among these, the merger for market monopoly is forbidden by the government on the ground that it has a bad effect upon the national economy.
There are various legal problems in company merger, especially in the Korean Commercial law because there are so many weak points in it. It is desirable that there are so many weak points in it. It is desirable that there should be reasonable and adaptable regulations that can be put into practical use.
As stated above, many countries do not have the same idea of merger and moreover the
form, the procedure and the effect of merger are not always alike. But they commonly
stipulate the universal succession of property in merger, two kinds of merger form or
acquisition and consolidation, the procedure for protection of stockholders and creditors of a corporation and limitation to the effect of nullified merger. It has also been pointed out that merger provisions in the Korean Commercial Code is very complicated, inexpedient and equivocal while foreign commercial code are very concrete and are appropriately stipulated focussing on solving the actual problems arising from merger. This is why prevailing commentators discuss the Korean Commercial Code should be revised.