Section 1 Assessment of Undertaking a Case |
| Article 4 | An expert shall, prior to undertaking a case, confirm its eligibility and independence as legally required for the type of case it undertakes and its compliance with the self-regulatory rules of the industry to which it belongs:
- The expert undertaking an engagement under the Acquisition and Disposal Regulations shall meet the qualification specified in Article 5, Paragraph 1 of the regulations, and shall not have any of the following circumstances or other situations which may affect its independence:
- the expert or his/her spouse is currently employed by the party of the case to perform routine work for which he/she receives a fixed salary, or currently serves as a director or supervisor thereof;
- the expert or his/her spouse has previously served as a director, supervisor, or manager of the party of the case or an employee of the party with material influence over the case, and has been discharged or resigned from the position for less than two years;
- the unit with which the expert or his/her spouse is employed and the party of the case are related parties of each other;
- the expert is a spouse or a blood relative within the second degree of kinship of a director, supervisor, or manager of the party of the case or an employee of the party with material influence over the case;
- the expert or his/her spouse invests materially in the party of the case or shares financial gains therewith;
- The expert undertaking an engagement under the Regulations Governing the Establishment and Related Matters of Special Committees of Public Companies for Merger/Consolidation and Acquisition or the Public Tender Offer Regulations shall not have a stake in a party to a merger/consolidation or acquisition, an offeror, or a public company whose securities are being acquired sufficient to affect its independence.
No expert may charge any remuneration or be remunerated, or draw conclusions of its opinions in advance.
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| Article 5 | An expert shall confirm the following with the principal before undertaking a case to identify the scope of work:
- purpose and use of the opinion, and laws and regulations involved;
- contents of the object under review;
- record date of evaluation;
- reference on which the principal relies in determining the price (for example, the principal’s appraisal data or appraisal report, report issued by any other expert it engages, results of evaluation by the principal, etc., and working papers of such report or evaluation results, etc.)
- the opinion is issued based on the value of the object under review that is appraised by the expert itself, or on other expert report or the principal’s self-appraisal report with validation of the results of the principal’s evaluation;
- possible appraisal or valuation method or validation procedure to be adopted;
- role and responsibilities of and between each of the expert and other experts;
- time of issuance and restrictions on the use of the opinion;
- other important restrictions on the conditions and scope of engagement.
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| Article 6 | Upon identifying the scope of work, an expert shall ascertain whether the principal is able to provide reference materials for price determination and evaluate whether the expert possesses adequate expertise and sufficient time and manpower and is able to perform its work in accordance with applicable laws and regulations and standards to issue an appropriate opinion.
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