Framatome Connectors USA, Inc. - Page 38




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          about Burndy-Japan’s import sales; (3) Burndy-US tried                      
          unsuccessfully to get Burndy-Japan to increase exports and to               
          provide engineering assistance to Burndy-US’s Hong Kong                     
          subsidiary in 1987; (4) Burndy-US tried unsuccessfully in 1991              
          and 1992 to get Burndy-Japan to give it copies of Burndy-Japan’s            
          Japanese patent applications, even though failing to file those             
          applications with the U.S. patent office within a year could                
          result in the loss of U.S. patent rights; and (5) Burndy-Japan              
          sold Burndy-US’s interest in a proprietary product outside Japan            
          in 1991 without Burndy-US’s approval.  We conclude that Burndy-US           
          did not control or have the right to control the president or               
          board of directors of Burndy-Japan before 1993, and that Burndy-            
          US did not otherwise dominate or control Burndy-Japan.                      
                    d.   Ability To Dissolve Burndy-Japan                             
               Petitioners contend that Burndy-US controlled Burndy-Japan             
          because it had the power to force Burndy-Japan to dissolve.  We             
          disagree.  Petitioners cite no authority to support this                    
          contention.  Under sections 94 and 404 of the Japanese Commercial           
          Code, Law No. 48, March 9, 1899, as amended, reprinted from                 
          Appendix 5A of Doing Business in Japan, Zentaro Kitagawa (Matthew           
          Bender & Co. 1994), a Japanese corporation dissolves if:  (a) So            
          provided by the terms of the articles of incorporation; (b) it              
          merges with another corporation; (c) the corporation is bankrupt;           
          (d) a court orders dissolution; or (e) the shareholders resolve             






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