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Article 8
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The term "financial or business affairs are not independent from other person(s)" as used in Article 9, paragraph 1, subparagraph 2 of the Rules shall mean any of the circumstances below:
- Sources of capital are heavily concentrated in non-financial institutions.
- The applicant company has entered into contracts that severely limit its operations or that are patently unreasonable such that it creates an adverse influence on the company.
- The applicant company jointly shares a line of credit with another person in which its own credit utilization cannot be distinguished, provided that the sharing of a line of credit between a parent company and a subsidiary shall not be subject to this restriction.
- The purchase amount in the most recent period or most recent fiscal year from the time of the application for listing from related parties that are not companies within the same group enterprise exceeds 70 percent, provided that such provision may be waived in situations resulting from unique characteristics of its business, market demand and supply conditions, government policy, or any other reasonable causes.
- The operating revenue or operating profit in the most recent period or most recent fiscal year from the time of the application for listing from related parties that are not a companies within the same group enterprise exceeds 50 percent, or the operating revenue derived from the use of a critical technology or asset provided by the related parties mentioned above exceeds 50 percent, provided that such provision may be waived in situations resulting from unique characteristics of its business, market demand and supply conditions, government policy, or any other reasonable causes, which situation accounts for not more than 70 percent.
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