Section III Company-Type Stock Exchange |
| Article 124 | The organization of a company-type stock exchange shall be limited to a company limited by shares. |
|
| Article 125 | The articles of incorporation of a company-type stock exchange shall contain, in addition to those required under the Company Act, the following particulars:
1. The numbers and qualifications of brokers or dealers allowed to participate in centralized trading on the exchange.
2. Duration of existence.
The duration of existence referred to in subparagraph 2 of the preceding paragraph shall not exceed a period of ten years. However, depending on the development of local securities trading, an application for extension may be filed with the Competent Authority three months prior to the expiration of the duration of existence. |
|
| Article 126 | Directors, supervisors, shareholders, or employees of a securities firm shall not serve concurrently as managerial officers of a company-type stock exchange.
At least one-third of the directors and supervisors of a company-type stock exchange shall be appointed by the Competent Authority from among relevant experts who are not shareholders. The provisions of paragraph 1 of Article 192 and paragraph 1 of Article 216 of the Company Act shall not apply.
Standards and regulations governing the election of non-shareholder directors and supervisors as referred to in the preceding paragraph shall be prescribed by the Competent Authority. |
Info |
| Article 127 | The stock of a company-type stock exchange shall not be listed for trading on its own centralized securities exchange market or one established by any other person. |
|
| Article 128 | A company-type stock exchange shall not issue bearer stock. Transferees of its shares shall be limited to the securities firms incorporated with permission under this Act.
The shareholding percentage that each securities firm may hold in the stock exchange shall be prescribed by the Competent Authority. |
Info |
| Article 129 | Securities brokers or securities dealers that trade on a company-type stock exchange shall enter into a contract with the stock exchange for the usage of the centralized securities exchange market, and the stock exchange shall file the contract, together with other relevant materials, with the Competent Authority for its recordation. |
|
| Article 130 | In addition to the grounds for termination specified in the contract referred to in the preceding Article, such contract shall also be terminated upon the dissolution of either party to the contract or the voidance of the special permission or the cessation of business of the securities broker or dealer. |
Info |
| Article 131 | (Deleted) |
|
| Article 132 | The contract prepared by a company-type stock exchange for the usage of its centralized securities exchange market shall contain provisions regarding deposits to the settlement and clearing fund and payment of securities transaction charges by the securities broker or dealer.
The standards governing the amount of settlement and clearing funds shall be prescribed by an order of the Competent Authority.
The rates for the securities transaction charges referred to in the first paragraph of this Article shall be jointly drafted by the stock exchange and the securities association and filed with the Competent Authority for its approval. |
Info |
| Article 133 | A company-type stock exchange shall specify in the contract that when there is any violation of Article 110 by a securities broker or a securities dealer that uses the centralized securities exchange market, it shall require the broker or dealer to pay a monetary penalty or suspend or restrict its trading rights or terminate the contract. |
Info |
| Article 134 | The provisions of Article 111 shall apply mutatis mutandis in the event a company-type stock exchange terminates its contract with a securities broker or dealer in accordance with the preceding Article. |
Info |
| Article 135 | A company-type stock exchange shall, in line with the provisions of Article 112 of this Act, expressly include in the contract for the usage of its centralized securities exchange market provisions requiring that a securities broker or dealer designated to wind up and liquidate the trades of other securities brokers or dealers shall have the contractual obligation to perform that duty. |
Info |
| Article 136 | A securities broker or dealer whose contract is terminated or is suspended from trading pursuant to Article 133 shall have the obligation of winding up and liquidating its trades on the centralized securities exchange market. |
Info |
| Article 137 | The provisions of Articles 41 and 48, subparagraphs 1 through 4, and subparagraph 6 of Article 53, Articles 58, 59, 115, 117, 119 through 121, and 123 shall apply mutatis mutandis to a company-type stock exchange. |
Info |