A stock company effecting entity conversion becomes a membership company on the effective day.

A stock company effecting entity conversion is, in accordance with the provisions on the matters set forth in paragraph (1), items (ii) through (iv) of the preceding Article, deemed to have effected changes to the articles of incorporation related to relevant matters on the effective day.

Shareholders of a stock company effecting entity conversion, in accordance with the provisions on the matters set forth in paragraph (1), item (iii) of the preceding Article, become members of the membership company after entity conversion on the effective day.

If there are provisions on the matter referred to in paragraph (1), item (v), (a) of the preceding Article, shareholders of the stock company effecting entity conversion, in accordance with the provisions on the matter set forth in item (vi) of that paragraph, become holders of the bonds referred to in item (v), (a) of that paragraph on the effective day.

The share options of a stock company effecting entity conversion are extinguished on the effective day.

The provisions of the preceding paragraphs do not apply if procedures under the provisions of Article 779 are not completed yet or where the entity conversion is cancelled.