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Article 8-1
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The situation in Article 31, paragraph 1, subparagraph 2 of the Rules where “its financial or business affairs are not independent from others” means any of the following:
- The applicant company's sources of funding are overconcentrated in non-financial institutions.
- The applicant company has entered into contracts with others that impose severe limits on its operations or that are obviously unreasonable, creating the likelihood that the company will be adversely influenced.
- The applicant company shares a joint a line of credit with another in which the credit of the two is not clearly distinguished. This provision does not apply, however, to a joint line of credit that is shared between a parent company and a subsidiary.
- 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 is 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 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.
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