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Title：

Taiwan Stock Exchange Corporation Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities  CH

Amended Date： 2024.11.15 (Articles 4, 6, 11, 12 amended,English version coming soon)
Current English version amended on 2024.01.12 
Categories： Primary Market > Management > Information Disclosure
Article Content Chapter Content Search Article No. Search Legal Basis Amended Article Attachment Legislative History Chinese

Title： Taiwan Stock Exchange Corporation Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities(2022.10.12)
Date： 
   Chapter I General Principles
1    These Procedures are adopted pursuant to Article 2 of the Securities Listing Contract signed between the Taiwan Stock Exchange Corporation (TWSE) and R.O.C. public companies, and Article 3 of the Contract for the Listing of Foreign Stock and the Contract for the Listing of Taiwan Depositary Receipts signed between the TWSE and foreign issuers.
    These Procedures are specially adopted to ensure that public disclosure of related information will be promptly carried out following the occurrence of an event having a material effect on the shareholder equity or the price of securities of any TWSE listed company or TWSE secondary listed company.
2    The term "TWSE listed company" as used in these Procedures means any TWSE listed company, Taiwan Innovation Board (TIB) listed company, TWSE primary listed company or TIB primary listed company as prescribed in Article 43 of the TWSE Operating Rules.The meanings of "parent" and "subsidiary" as used in these Procedures shall be determined in accordance with the regulations issued by the competent authority to govern the preparation of financial reports for the relevant industry.
    The term "major subsidiary" as used in these Procedures means a subsidiary that meets the conditions of Article 2-1 of the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants or Article 5 of the Relevant Regulations Governing the Auditing and Attestation of Financial Statements of Financial Institutions by Engaged Certified Public Accountants.
    The term "net worth" as used in these Procedures means the equity attributable to owners of the parent on the balance sheet prepared pursuant to regulations governing the preparation of financial reports for the relevant industry issued by the competent authority.
    The term “halt of dealings” as used in these Procedures means the halt by TWSE of the exchange of listed securities by a TWSE listed company for a specific period with or without an application made by the TWSE listed company, for the TWSE listed company to disclose information publicly according to these Procedures.
    The term “resumption of exchange” as used in these Procedures means the resumption by TWSE of the exchange listed securities by a TWSE listed company with or without an application made by the TWSE listed company.ruby
3    A TWSE listed company shall establish internal operating procedures for the processing of material information, including systems pertaining to evaluation for the publication of material information, safekeeping of approval records, and actions to be taken on errors made, etc.
    No TWSE listed company or TWSE secondary listed company may disclose any information to the public prior to disclosure of the information pursuant to these Procedures, in order to ensure that the information is accurate and accessible to the general public.
    Material information published by a TWSE listed company or a TWSE secondary listed company shall fully describe the facts of the material event, its causes, the effects on company finances and business, an estimate of the monetary amount of the effects, and responsive measures. The required content shall be published in accordance with the TWSE reporting format. Any explanation by a company to the public and media of the material information that the company has published shall be consistent with the main contents of the material information and contain no exaggerating or advertisement- or promotion-like statements or provide no unconfirmed news or untrue data.
    When convening a press briefing concerning material information, a representative of a TWSE listed company shall give a detailed statement based on the preceding paragraph and prepare related written materials.
    With respect to material information already published by a TWSE listed or TWSE secondary listed company, if subsequent events result in further material changes, the company shall provide a timely update or supplementation of relevant information pursuant to the same provisions that governed reporting of the original information.
 
   Chapter II Material Information
4    "Material information of TWSE listed companies" means the following matters:
  1. Dishonor of a negotiable instrument due to insufficient deposits or notation of settlement subsequent to dishonor of a negotiable instrument, refusal of a financial institution to honor a transaction, or other loss of credit of a listed company or a responsible person, parent company, or subsidiary thereof, or a material change in shareholding of the parent company; or any alteration of trading method, suspension of trading, delisting, or restoration to the original conditions, in regard to the stock of a listed company, as publicly disclosed in accordance with the TWSE Operating Rules.
  2. Any material effect on company finances or business resulting from any litigious or non-litigious matter, administrative disposition, contentious administrative procedure, provisional attachment, provisional injunction, or compulsory execution, with respect to a listed company or a responsible person thereof; or a chairperson or managerial officer of the company violates the Securities and Exchange Act, Futures Trading Act, Company Act, Banking Act, Insurance Act, Act Governing Bills Finance Business, Financial Holding Company Act, or Commercial Accounting Act, or is indicted for a crime of corruption malfeasance in office, fraud, breach of trust, or misappropriation.
  3. Any material effect on company finances or business resulting from any serious decrease in output or complete or partial suspension of work, leasing out of a company plant or principal equipment, or pledge or mortgage of all or a principal portion of a company's assets.
  4. Any event set forth in Article 185, paragraph 1 of the Company Act of the Republic of China (ROC).
  5. Reorganization or bankruptcy procedure of a listed company or parent or subsidiary thereof, and any and all events occurring in the course of such procedure, including any petition made to a court and any notice given or ruling handed down by a court, or any ruling prohibiting transfer of shares or any precautionary measure ordered by a court under relevant laws, or any material change in any of the above matters.
  6. Appointment of or change in chairman, general manager, a juristic-person director or supervisor or representative thereof, an independent director, a natural-person director or supervisor, or a member of the functional committee established pursuant to the Securities and Exchange Act, or change in one-third or more of directors, or in the case of a TWSE primary listed company or TIB primary listed company, where the number of directors or independent directors with a registered household address in the ROC is less than the required number under Article 6, paragraph 2 of the Rules for Regulating TWSE Primary Listed Companies and TIB Primary Listed Companies after Listing.
  7. Change of certified public accountant (CPA) for any reason other than internal adjustments within the certifying accounting firm, or in the case of TIB listed companies, TWSE primary listed companies and TIB primary listed companies, where appointment of a securities underwriter is terminated or changed during the term of the appointment contract executed with the lead underwriter.
  8. Personnel changes such as a change of spokesperson, acting spokesperson, important operations officer (chief executive officer, chief operating officer, chief marketing officer, or chief strategy officer), principal financial officer, principal accounting officer, corporate governance officer, chief information security officer, research and development officer, chief internal auditor, or in the case of a TWSE primary listed company or TIB primary listed company, of its litigious or non-litigious agent.
  9. Change in financial year, or any accounting change resolved upon by the board of directors that is required to be submitted for the competent authority's approval and publicly announced and reported in accordance with the applicable regulations governing the preparation of financial reports adopted by the competent authority for the relevant industry, or any non-approval by the competent authority of any application made to the competent authority for an accounting change.
  10. Any material effect on company finances or business resulting from any signing, amendment, termination, or rescission of an important memorandum of understanding, a plan for a strategic alliance or other business cooperation or mutual non-competition commitment, or an important contract, change in any material respect of a business plan, completion of development of a new product, successful development and formal entry into the full-scale production stage of an experimental product, or major progress in the development of a new product or technology.
  11. Resolution by the board of directors to carry out a capital reduction, merger or consolidation, division, acquisition, exchange or conversion of shares or transfer of shares from another, dissolution, issue of new stock for capital increase, record date of a capital reduction or cash capital increase, issue of corporate bonds, issue of employee stock option certificates, issue of new restricted employee shares, issue of other securities, private placement of securities, change in par value per share, participation in the establishment of or conversion into a financial holding company or investment holding company or subsidiary thereof, or any material change in any of the above matters; or failure by companies participating in a merger, consolidation, division, acquisition, or transfer of shares from another, to convene on the same day and pass resolutions by their boards of directors or shareholders meetings, or inability to convene a subsequent shareholders meeting of a company participating in a merger, consolidation, division, acquisition, or transfer of shares from another, or veto by either side of the proposal for merger, consolidation, division, acquisition, or transfer of shares from another; or resolution of the board of directors to cancel a merger or consolidation during the implementation of the merger or consolidation plan following the initial board resolution in favor of the merger or consolidation.
  12. The date, time, venue, and related information of an investor conference or conference of the same nature that a company holds or is invited to attend and relevant information connected with it, or the disclosure by any other means of financial and business information that has not been entered into the Market Observation Post System.
  13. A resolution by the board of directors to publish financial forecast information, the inapplicability of such financial forecast information, or the correction or updating of such financial forecast information, or, in the case of a company that has published complete financial forecasts, when the difference in any of the following reaches 20 percent or greater, and the sum involved reaches NT$30 million and 0.5 percent of share capital:
    1. The difference between the self-assessed (unaudited) comprehensive income as publicly disclosed and filed within 1 month after the close of the fiscal year and the forecasted comprehensive income as most recently publicly disclosed and filed.
    2. The difference between the actual comprehensive income stated in the publicly disclosed and filed annual financial report and the forecasted comprehensive income.
    3. The difference between the actual comprehensive income stated in the publicly disclosed and filed annual financial report and the self-assessed (unaudited) comprehensive income as publicly disclosed and filed within 1 month after the close of the fiscal year.
    In the case of a company whose shares have no par value or a par value other than NT$10 per share, for the calculation of the aforesaid 0.5 percent of share capital under the forepart of this paragraph, 0.25 percent of net worth shall be substituted.
  14. Resolution by the board of directors to distribute or not to distribute dividends, or a change in dividend distributions by a resolution of the board of directors or a shareholders meeting, or resolution of a record date for dividend distribution, or change of date of distribution of cash dividends after an ex-dividend announcement, or failure to distribute cash dividends by the date set for distribution of the cash dividends.
  15. Resolution by the board of directors or a shareholders meeting to directly or indirectly carry out an investment plan of an amount reaching not less than 20 percent of the company's share capital or NT$1 billion, or any material change in any of the above matters. In the case of a company whose shares have no par value or a par value other than NT$10, for the calculation of the aforesaid 20 percent of share capital, 10 percent of net worth shall be substituted.
  16. A change by resolution of the board of directors in a plan for capital increase by cash or offering of corporate bonds after such plan has become effective upon registration or a takedown issue of new shares has been made, or a change by resolution of the board of directors in a plan for private placement of securities after passage of the plan by a resolution of the board of directors or a shareholders meeting.
  17. Resolution of the board of directors or the date and form of the ordinary shareholders meeting or special shareholders meeting specified in a notice received from the person with the right to convene the said meeting, the cause of such a meeting, and the date of suspension of changes to entries in the shareholders' roster
  18. Important resolution of a regular shareholders meeting or special shareholders meeting.
  19. There is any material event such as internal control fraud, non arms-length transaction, or defalcation of assets; or a search is conducted in accordance with law; or the chairperson or general manager is wanted.
  20. Where any of the following provisions is met:
    1. A.An acquisition or disposal, by the TWSE listed company or by a subsidiary whose shares have not been publicly issued domestically, of assets within the scope of Article 3 of the Regulations Governing Acquisition or Disposal of Assets by Public Companies adopted by the competent authority and where the circumstances of Article 31 or 32 of those Regulations require public disclosure and filing, with the exception of the following circumstances:
      1. Public disclosure has already been made of a merger, consolidation, division, acquisition, or transfer of shares from another pursuant to subparagraph 11 of this paragraph.
      2. Public disclosure has already been made of an acquisition or disposal of privately placed securities pursuant to subparagraph 24 of this paragraph.
      3. The information pertains to derivatives trades that must be reported by the 10th of each month.
      4. An acquisition or disposal of any type of publicly placed open-end fund or financial product issued by a commercial bank that matures within three months with principal and interest guaranteed.
    2. Public disclosure and filing is required in the event of any unrealized losses on derivatives trading amounting to 3 percent or more of net worth.
  21. Resolution by the board of directors (or a shareholders meeting) to permit a managerial officer (or director) to engage in competitive conduct, or knowledge by the company that a managerial officer is operating the same kind of business independently or on behalf of another person, or a director is involved in conduct within the company's scope of business independently or on behalf of another person, and the investment or business that the managerial officer or director is engaged in is a Mainland-area enterprise, and there has been any failure to duly obtain permission from the board of directors (or a shareholders meeting), or there is any material change in any of the above matters.
  22. Public disclosure and filing of endorsements and guarantees by the listed company as required under Article 25 of the Regulations Governing Loans of Funds and Endorsements and Guarantees by Public Companies.
  23. Public disclosure and filing of lending funds to others by the listed company as required under Article 22 of the Regulations Governing Loans of Funds and Endorsements and Guarantees by Public Companies promulgated by the competent authority.
  24. Acquisition or disposal of privately placed securities by a listed company or a subsidiary thereof.
  25. Suspension of business transactions between the listed company and a major purchaser or supplier, where the purchaser or supplier accounted for 10 percent or more of the company's total amount of sales or purchases as stated in the parent company only (or individual) financial report for the most recent financial year.
  26. Occurrence of a disaster, group protest, strike, environmental pollution, cyber security event, or any other material event, resulting in any of the following situations:
    1. where the company incurs a material loss or impact;
    2. where a relevant authority orders suspension of work, suspension of business, termination of business, or revokes or voids a permit pertaining to pollution;
    3. where the administrative fines for one single event have accumulated to NT$1 million or more.
  27. Finalization of negotiation results of a negotiation meeting called between the listed company and a creditor bank.
  28. Dishonor of a negotiable instrument, filing for bankruptcy or reorganization, or any other similar circumstance, on the part of a related party of the listed company or principal debtor to the company or a joint and several guarantor of a principal debtor; or inability by a principal obligor, in favor of whom the listed company has made an endorsement or guarantee, to settle a matured negotiable instrument, loan, or other obligation.
  29. Any re-filing and public disclosure of the regular annually filed internal control system statement due to any change in the content thereof; or obtaining of the Internal Control Special Audit Report for the special audit of internal controls conducted by the CPA.
  30. Failure to make a public disclosure or a filing within a prescribed time limit; an error or omission in a financial report prepared by a listed company, with respect to which Article 6 of the Enforcement Rules to the Securities and Exchange Act requires a correction to or re-compilation of the financial report; a CPA issues an audit or review report indicating a material uncertainty with the ability to continue as a going concern, an audit report containing an opinion other than an unqualified opinion or a review report containing a conclusion other than an unqualified conclusion on a publicly disclosed and filed annual or semiannual financial report, except in cases where the CPA issues a qualified audit report or a review report with a qualified conclusion for the reason of annual amortization of losses, as required by a law or regulation of a competent authority, or for the reason that the amount of investment by a non-major subsidiary or of investments accounted for using equity method, and the gain or loss thereupon, as presented in the interim financial report is calculated on the basis of the investee company's financial report that have not been audited or reviewed by a CPA. However, if the above-mentioned non-major subsidiary is a subsidiary of a financial holding company, the subsidiary's interim financial report shall be audited or reviewed by a CPA in accordance with applicable laws and regulations.
  31. Any of the following occurs to the listed company except where the material information shall be reported by the listed company on behalf of the relevant company in accordance with Article 7, paragraph 2, 3, or 5:
    1. where the financial reports are presented to the board of directors for adoption or are adopted by the board of directors, except for material information that has been disclosed according to item 2 of this subparagraph and the content is consistent.
    2. where the annual self-assessed financial information is adopted by the board of directors in accordance with Article 3-5 of the TWSE Rules Governing Information Filing by Companies with TWSE Listed Securities and Offshore Fund Institutions with TWSE Listed Offshore Exchange-Traded Funds.
    3. where a notice of board of directors meeting as in item 1 or 2 of this subparagraph is issued in accordance with Article 3, paragraph 2 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies; or a change occurs to any of the above.
  32. Insufficient centralized custody ratio after stocks have been placed in centralized custody pursuant to regulations and prior to expiry of the custody period, as the result of withdrawal, due to a court execution order or some other reason, of stocks of personnel whose stocks had been placed in centralized custody.
  33. Occurrence of any of the changes in shareholding set forth in Article 369-8, paragraph 1 or 2 of the Company Act and receipt of notice of the same.
  34. A director or supervisor is subject to a provisional injunction suspending them from the exercise of their powers or is subject to an emergency disposition; or, a director is subject to a provisional injunction suspending the director from the exercise of powers or is subject to an emergency disposition and the board of directors is thereby rendered unable to exercise its powers.
  35. Any matter required to be publicly disclosed and filed by the company pursuant to the Regulations Governing Share Repurchase by Listed and OTC Companies.
  36. Occurrence of any the following matters due to a capital reduction or change of par value per share:
    1. Completion of amendment registration of a change to capitalization.
    2. Passage of a plan for share replacement operations.
    3. Any subsequent failure to execute such share replacement plan.
    4. At the time of announcement of the financial report, the listing procedures for the new shares replacing the old ones due to the capital reduction or change of par value per share have yet to be completed, resulting in a discrepancy between the number of common shares used as the calculation basis for net worth per share in the financial statement and the number of outstanding shares.
    5. If the TWSE listed company is required to carry out share replacement operations due to a capital reduction, and the transferee company of the demerger is neither a TWSE listed nor a TPEx listed company, then 3 business days before the date on which trading will resume, public disclosure and filing shall be made of the following information for the demerged company and the transferee company of the demerger for the day prior to the record date of the demerger: the unaudited or CPA-reviewed share capital, net worth, and net worth per share, and the CPA-attested (or reviewed) earnings per share for the most recent period.
  37. Issuance of an undertaking upon applying for listing and subsequently inability to perform the undertaking; failure to carry out remedial procedures within 3 months of the day of the aforesaid occurrence.
  38. Any matter required to be publicly disclosed and filed pursuant to the Regulations Governing Tender Offers for Purchase of the Securities of a Public Company, or information concerning notification of acquisition received, such as public tender offer report forms, public tender off prospectuses and related documentation filed and publicly disclosed by offerors.
  39. Revocation by the competent authority of the permit of a financial holding company or of a listed company defined as a bank or a securities, futures, or insurance company under Article 2 of the Organic Act Governing the Establishment of the Financial Supervisory Commission, or disposition or administrative fines for one single event up to NT$1 million or above by the competent authority for violation by said company of the Financial Holding Company Act, Banking Act, Insurance Act, Act Governing Bills Finance Business, or laws and regulations relating to securities and futures, unless the disposition requires rectification, or improvement within a prescribed time limit, without material impact on the finance or business of the company.
  40. The TWSE has announced according to these Procedures the halt or resumption of dealings in the listed securities.
  41. Increase or decrease in the number of held companies of an investment holding company.
  42. Resolution of the following matter by the board of directors or a shareholders meeting, or any material change in such a matter:
    1. To apply for termination of listing of its securities.
    2. A TIB listed company or TIB primary listed company applies to the TWSE to be changed as a TWSE listed company or TWSE primary listed company under Article 43 of the TWSE Operating Rules, or acknowledges the result of the above review.
  43. A donation to a related party or a major donation to a non-related party under the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
  44. Objection or expression of reservation by a member of the audit committee or remuneration committee, or by an independent director, about a resolution by, respectively, said committee or the board of directors, that has been included in a record or stated in written; for a listed company that has established an audit committee, any matter adopted with the approval of two-thirds or more of all directors without having been passed by the audit committee; any remuneration passed by the board of directors that is more favorable than the suggestion by the remuneration committee.
  45. Forfeiture by the directors and supervisors as a whole of subscription rights to shares in a number reaching one-half or more of subscribable shares upon cash capital increase of a listed company, and opening of the shares for subscription by a specific person or persons through negotiation.
  46. Where a listed company holds more than 70 percent of the total issued shares or total share capital of a TWSE listed (or TPEx listed) subsidiary thereof; or where 70 percent of the total issued shares or total share capital of a listed company is held by another TWSE listed (or TPEx listed) company.
  47. If a listed company issues securities outside of Taiwan, the making of any adjustment for differences in the overseas financial report due to inconsistency in the accounting principles applied in the two places with respect to financial information filed for any period in the place of overseas listing; or if the financial report of a TWSE primary listed company or TIB primary listed company is not prepared according to the generally accepted accounting principles (GAAP) as described in Article 3 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the differences in items between the accounting principles employed and those of the ROC and the monetary amounts affected, and the certifying CPA's opinion on the aforementioned matters.
  48. If the circumstances set forth in Article 53-25 of the TWSE Operating Rules exist.
  49. If the company has lost its control over its key subsidiary or a subsidiary deemed as a TWSE listed company under Article 7, paragraph 3, or has reduced the percentage of its direct or indirect shareholding in (or contributions to) that subsidiary by 10 percent or more, on an accumulative basis, in three years; or the circumstances in Article 48-3, paragraph 2 of the TWSE Operating Rules are conformed to, those changes that have been publicly disclosed in accordance with this paragraph, however, shall be excluded.
  50. Where a board of directors or shareholders meeting held in accordance with Article 48-3 of the TWSE Operating Rules, the contents of resolutions of the relevant matters; or where a subsidiary listing of securities in an overseas securities market for trading, and one of the following applies:
    1. An application for listing and trading has been filed.
    2. The company becomes aware of the results of the review in the preceding Item.
    3. Where the application for listing and trading is approved, the contents published by the listed company and subsidiary on the overseas securities market after issuing an undertaking due to the listing.
  51. Any other material policy resolution of the board of directors, or other circumstances having a material effect on the shareholders' equity or securities prices of a listed company.
    If an "other loss of credit" in subparagraph 1 of the preceding paragraph is inability to redeem issued matured straight corporate bonds, convertible corporate bonds, corporate bonds with warrants, or corporate bonds privately placed under Article 248, paragraph 2 of the Company Act, the monetary amount and quantity unredeemed and status of negotiations with creditors as of the end of the preceding month, cash budget statement for the current month, and status of execution of the cash budget statement for the preceding month shall be input by the 10th day of each month until redemption has been completed in full. If dishonor of negotiable instruments due to insufficient deposits has occurred and remediation has not yet been made after the TWSE has rendered a disposition of altered trading method or suspension of trading, the date of dishonor, number, monetary amount, and correspondent bank(s) of any dishonored negotiable instrument(s) not yet notated as settled as of the end of the preceding month, cash budget statement for the current month, and status of execution of the cash budget statement for the preceding month shall be input by the 10th day of each month until remediation has been carried out.
    With respect to a resolution by the board of directors to carry out a merger or consolidation, division, acquisition, or transfer of shares from another as referred to in paragraph 1, subparagraph 11, if the counterparty is a foreign company, the TWSE listed company shall promptly, completely, and accurately input information related to the resolution for, process of, and method of the merger or consolidation, acquisition, or transfer of shares from another, of the foreign business.
    Under the circumstances in paragraph 1, subparagraph 32, in addition to complying with the requirements set forth in Article 6, the TWSE listed company shall, by the day following the expiry of the time limit of which the company is notified by letter of the TWSE for replacing shares withdrawn from custody, input the amount of shares replaced and date of replacement.
5    "Material information of a TWSE secondary listed company" means the following matters:
  1. An event set out in Article 36, paragraph 2, subparagraph 2 of the Securities and Exchange Act.
  2. Material information events whose simultaneous filing is required by the laws, regulations, or bylaws of the foreign issuer's home country or its country of listing.
  3. Any circumstance in regard to the company itself set out in Article 50-3 of the TWSE Operating Rules.
  4. A change in the foreign issuer's articles of incorporation or any capital increase or decrease by the foreign issuer.
  5. Circumstances with respect to the issuance, maturity, or repurchase of the foreign issuer's preferred share or corporate bonds, and for corporate bonds convertible to stocks, the allotment of shares in accordance with company rules.
  6. A change to the foreign issuer's principal line of business, custodian institution, or to the depositary institution located in the ROC.
  7. Any pledge, lease, sale, or retirement of major operating assets of the foreign issuer.
  8. A reduction in or cessation of production of some or all products by the foreign issuer due to a major disaster.
  9. The pendency or conclusion of a material litigation case or tax disposition case involving the foreign issuer, its custodian institution, depositary receipts, or the agent institution in the ROC of a secondary listed company, or the commencement of lawful reorganization, bankruptcy, or liquidation proceedings by the foreign issuer.
  10. Any circumstance set out in subparagraphs 6 through 9 of this article occurs to a subsidiary in which the foreign issuer holds more than a 50 percent share or a sub-subsidiary at any level beneath the foreign issuer that it directly or indirectly controls, and that materially affects its business or finances.
  11. Conduct by a promoter or director of the foreign issuer that, under the law of the foreign issuer's home country, entails joint and several liability for damages with the secondary listed company.
  12. A decision by a court of the foreign issuer's home country that duly voids or declares invalid a resolution of the foreign issuer's shareholders meeting.
  13. A change in the laws or regulations of the foreign issuer's home country that materially affects shareholder equity or corporate operations.
  14. A resolution by the board of directors of the foreign issuer to carry out a merger or consolidation, demerger, acquisition, exchange or transfer of shares to or from another, dissolution, or any material change in any of the above matters; failure for any reason by a company participating in a merger or consolidation, demerger, acquisition, or transfer of shares from another, to convene a subsequent shareholders meeting, or a veto by either side of such a proposal; or a resolution of the board of directors to cancel a merger or consolidation during the implementation of the merger or consolidation plan following the initial board resolution in favor of the merger or consolidation; or a resolution by the board of directors for a demerger or distribution of dividends, causing the holders of its issued Taiwan Depositary Receipts (TDRs) to acquire shares of another company for free.
  15. Listed foreign stocks, TDRs, or foreign bonds are reported lost, subject to a judgment of exclusion, or subject to attachment or provisional attachment by order of a court, or their holder is declared bankrupt by a court ruling, where sufficient to affect the market price of the securities listed for trading.
  16. A change in the credit rating assigned to a foreign issuer or its issued securities by a credit rating agency.
  17. A change in, or a change in the plan for, a private placement of securities by the foreign issuer.
  18. A report in the domestic or foreign mass media or any information provided by any investor sufficient to affect the price of a listed foreign stock, TDRs, foreign straight bonds, foreign convertible corporate bonds, or foreign corporate bonds with warrants.
  19. Change in chairperson, general manager, juristic-person director or supervisor, independent director, principal financial or accounting officer, internal audit officer, attesting CPA, CPA for secondary review, or agent for litigious and non-litigious matters, of the foreign issuer.
  20. Termination on the CPA's own initiative or otherwise failure by the CPA of the foreign issuer to carry out the audit and attest work on the company's financial reports.
  21. Any amendment to the depositary agreement signed between the foreign issuer and the depository institution that has a material effect on shareholder equity.
  22. A resolution by the foreign issuer to repurchase TDRs, the expiration of the repurchase period or completion of the repurchase, or the repurchased TDRs cumulatively reaching 2 percent of the total number of the already issued TDRs, or the number of outstanding units of the TDRs being less than 12 million units.
  23. The date, time, venue, and relevant information of an investor conference or other conference of the same nature which is held by a foreign issuer or to which a foreign issue is invited, or public disclosure by any other means of financial and business information that has not been entered into the Market Observation Post System.
  24. Inability by the foreign issuer to punctually pay for foreign straight bonds, foreign convertible corporate bonds, or foreign corporate bonds with warrants that have matured or that creditors have requested it to redeem.
  25. Failure by the foreign issuer to file the financial report by the deadline under the regulations of the original place of listing; issuance by a CPA of an audit or review report indicating a material uncertainty with the ability to continue as a going concern, an audit report containing an opinion other than an unqualified opinion or a review report containing a conclusion other than an unqualified conclusion on a publicly disclosed and filed annual or semiannual financial report, except in cases where the CPA issues a qualified audit report or a review report with a qualified conclusion for the reason of annual amortization of losses, as required by a law or regulation of the original place of listing, or for the reason that the amount of investment by a non-major subsidiary or of investments accounted for using equity method, and the gain or loss thereupon, as presented in the interim financial report is calculated on the basis of the investee company's financial report that have not been audited or reviewed by a CPA.
  26. Publication of information by a foreign issuer on its own initiative that has a material effect on shareholder equity or the price of securities.
    Documents or materials submitted by a TWSE secondary listed company to the securities exchange or supervisory authorities of its original listing shall be simultaneously submitted to the TWSE.
    A TWSE secondary listed company may engage its agent in the Republic of China to conduct the filing of material information with the TWSE via the Internet.
     If any circumstance under paragraph 1, subparagraph 24 applies to a TWSE secondary listed company, then by the tenth day of each month, it shall input the monetary amount and quantity unredeemed and the status of negotiations with creditors as of the end of the preceding month, the cash budget statement for the current month, and the status of execution of the cash budget statement for the preceding month, until redemption has been completed in full.
6    A TWSE listed company shall input the material information or explanations into the Internet information reporting system designated by the TWSE within the filing time limits of the following subparagraphs:
  1. When any circumstance in any of the subparagraphs of Article 4, paragraph 1 of these Procedures applies to the TWSE listed company, except for subparagraph 40, where the material information shall be input within an hour after the TWSE announces the halt or resumption of dealings in the securities, in the event of any of the circumstances in the remaining subparagraphs, the material information shall be input two hours before the beginning of trading hours on the trading day following the date of occurrence of the event. However, if a press release is issued earlier, the information shall be input simultaneously with the press release.
  2. If the TWSE listed company discovers mass media reportage of any circumstance under Article 4, paragraph 1, or reportage sufficient to affect the market price of its listed securities, or any reportage that diverges from facts, the company shall immediately input an explanation of the material information no later than two hours after the discovery.
  3. When the circumstances of any subparagraph under Article 11, paragraph 1 apply to a TWSE listed company, information on the event shall be input on the date of occurrence of the event or on the same day as the media reportage, and in any event within two hours after the press conference, except under the circumstances of paragraph 1, subparagraph 7, in which case the information shall be input at the time of the press conference or within two hours after the press conference.
    The date of occurrence of the event referred to in subparagraph 1 of the preceding paragraph means the date of agreement, date of contract signing, date of payment, date of execution of a trading order, date of title transfer, date of a resolution of the board of directors or a committee established by it, or other date that can confirm the counterparty and monetary amount of the transaction, whichever date is earlier; however, for any investment requiring the approval of the competent authority, the earliest of the above dates or the date of receipt of approval by the competent authority shall apply.
    The filing time limits under the subparagraphs of paragraph 1 shall be based on Taiwan time, and the filings shall be made in Chinese, provided that they may also be simultaneously made in English. In addition, when foreign laws or regulations impose time constraints concerning material information that, under these Procedures, a TWSE listed company must report on behalf of a foreign enterprise, the TWSE may accommodate the time constraints on the foreign enterprise and make a simultaneous disclosure.
    If a TWSE listed company issues securities outside of the ROC, and during the duration of those securities, undergoes any event in Article 4, paragraph 1, it shall simultaneously input the information or explanations in English into the Internet information reporting system designated by the TWSE, or, if it undergoes any material event that requires immediate reporting under the laws, regulations, or securities exchange rules of the country of listing or the country of the company's registration, it shall simultaneously input that information into the Internet information reporting system designated by the TWSE. If it receives a written inquiry from the securities regulatory agency or securities exchange of the country of listing or the country of the company's registration with respect to any matter with a material effect on shareholder equity or the price of securities, it shall immediately forward to the TWSE a copy of the content of the written enquiry and any response to it.
    Where the paid-in capital of a TWSE listed company as at the end date of the last financial year or the sum of the foreign and mainland Chinese shareholdings stated in the shareholder register of its annual general meeting held in the preceding year meets a certain standard, the information or explanations shall be input in English into the Internet information reporting system designated by the TWSE if any of the subparagraphs of paragraph 1, Article 4 applies.
    The time and standard mentioned in the preceding paragraph are as below:
  1. From July 2020, the paid-in capital of the end date of the last financial year is NT$15 billion at the minimum.
  2. From 2021, the paid-in capital of the end date of the last financial year is NT$10 billion at the minimum, or the sum of the foreign and mainland Chinese shareholdings stated in the shareholder register of its annual general meeting held in the preceding year is 30% at the minimum.
  3. From 2022, the paid-in capital of the end date of the last financial year is NT$2 billion at the minimum.
  4. From 2024, the paid-in capital of the end date of the last financial year falls short of NT$2 billion at the minimum.
    If any circumstance under Article 5 applies to a TWSE secondary listed company, it shall file a report within the time limits under paragraphs 1 to 4. However, the circumstance under Article 5, paragraph 1, subparagraph 18 shall be handled no later than the date of discovery, and as promptly as possible within the time period allowed for the filing of material information under the laws or regulations of the home country or the country of listing of the secondary listed company.
    If the circumstance under the preceding paragraph falls within the purview of laws or regulations of the company's home country or country of listing, then the company, within the time limit prescribed by such laws or regulations, shall simultaneously input information into the TWSE-designated information reporting website in Chinese.
7     In any circumstance where a subparagraph of Article 4, paragraph 1 specifically requires reporting by a subsidiary, a TWSE listed company shall report on behalf of any subsidiary that is non-TWSE and non-TPEx listed and is not registered as an emerging stock company.
     When any circumstance under a subparagraph of Article 4, paragraph 1 applies to a major subsidiary of a TWSE listed company, if the subsidiary is non-TWSE and non-TPEx listed and not registered as an emerging stock company, it will be deemed material information of the TWSE listed company, and the TWSE listed company shall file a report on the subsidiary's behalf.
    An investment holding company or financial holding company, in addition to being required to report material information on behalf of their major subsidiaries, is also required to report material information of any subsidiary as described below, which shall be deemed a TWSE listed company:
  1. The net worth of a subsidiary held by an investment company, when the subsidiary is non-TWSE and non-TPEx listed and has not registered its stock as emerging stock, accounts for 2 percent or more of the net worth of the investment holding company as stated in the consolidated financial statement for the most recent period.
  2. A financial holding company's subsidiary in the name of which appears any of the terms "bank," "insurance," "securities," "futures," or "bills," or the net worth of which accounts for 2 percent or more of the net worth of the financial holding company stated in the consolidated financial statement for the most recent period.
    Where the dollar amount of the combined investment in any single enterprise by a TWSE listed company and/or any of its subsidiaries exceeds 10 percent of the company's net worth, if such invested single enterprise is not a domestic public company, and there occurs in respect thereof any of the events set out in Article 7, subparagraphs 1 to 8 of the Securities and Exchange Act Enforcement Rules, the TWSE listed company shall report on its behalf two hours before the beginning of trading hours on the trading day following the date it learns of the occurrence of an above-stated event or of the media reportage of the event.
    Where any circumstance under Article 4, paragraph 1 applies to the parent company of a TWSE listed subsidiary, when the parent company is non-TWSE and non-TPEx listed and has not registered its stock as emerging stock, it shall be deemed material information of the TWSE listed company, which shall report the information on behalf of the parent company. If the parent company is a foreign company, the TWSE listed subsidiary shall report on its behalf any of the matters in the following subparagraphs two hours before the beginning of trading hours on the trading day following the date it learns of the occurrence or on which the media reports the event:
  1. Material change in shareholder equity.
  2. Material change in business policy.
  3. Material disaster resulting in serious reduction or complete cessation of production.
  4. Material effect on shareholders' equity or company operations resulting from a change in laws, regulations, or rules of the home country
  5. Mass media reportage about the parent company sufficient to affect securities prices of a listed subsidiary in the ROC.
  6. Occurrence of any other material event that shall be immediately reported pursuant to law or regulation of the foreign company's home country.
8    A TWSE listed company shall comply with the following requirements for investor conferences or conferences of the same nature:
  1. The company may not hold or attend a conference during TWSE trading hours, except under the following circumstances:
    1. An overseas investor conference is held during TWSE trading hours as a result of the time difference;
    2. The company attends an investor conference by invitation;
    3. Other circumstances under which the company has applied and the TWSE deems it necessary.
  2. The material information, including announcement of the date, time and venue of the conference and other relevant information, shall be published at the latest 1 day prior to the date of convening or 1 day prior to the date of attending the conference.
  3. Information reporting for an investor conference in this paragraph shall be conducted pursuant to Article 3, paragraph 2, subparagraph 14 of the TWSE Rules Governing Information Reporting by Companies with TWSE Listed Securities and Offshore Fund Institutions with TWSE Listed Offshore Exchange-Traded Funds.
  4. The financial and business information disclosed in the conference may not go beyond the content of the information disclosed under the preceding subparagraph.
    A TWSE listed company shall at least hold or be invited to one investor conference in the R.O.C. every year.
    A TWSE secondary listed company shall comply with the following requirements for investor conferences or conferences of the same nature:
  1. The material information, including announcement of the date, time and venue of the conference and other relevant information, shall be published at the latest 1 day prior to the date of convening or 1 day prior to the date of attending the conference.
  2. Information reporting for an investor conference in this paragraph shall be conducted pursuant to Article 3, paragraph 8, subparagraph 12 of the TWSE Rules Governing Information Reporting by Companies with TWSE Listed Securities and Offshore Fund Institutions with TWSE Listed Offshore Exchange-Traded Funds.
  3. The financial and business information disclosed in the conference may not go beyond the content of the information disclosed under the preceding subparagraph.
9    If the TWSE discovers that a TWSE listed company or TWSE secondary listed company has failed to publish any material information required or the contents of material information are not complete, as mentioned under Article 4 or Article 5, and the TWSE deems it necessary, it may make inquiries by facsimile, telephone, or e-mail of the spokesperson or acting spokesperson of the abovementioned company, the litigious or non-litigious agent of the TWSE primary listed company or TIB primary listed company, or the TWSE secondary listed company's agent in the ROC, who shall provide an explanation for each matter under inquiry, and shall input the explanations into the TWSE-designated Internet information reporting system within the time limits under the following subparagraphs. This provision shall not apply if the TWSE listed or TWSE secondary listed company is rendered by any circumstance that is not attributable to itself unable to input the explanations within the prescribed time limits, and an extension has been approved by the TWSE:
  1. If the company receives the inquiry from the TWSE at or before 5 pm on a given trading day, it shall input explanations of the material information immediately and in any event no later than two hours after notice.
  2. If the company receives the inquiry from the TWSE after 5 pm on a given trading day or on a regular holiday, it shall input explanations of the material information immediately and in any event no later than two hours before the commencement of trading hours on the trading day following notice.
  3. In case of emergency or a material incident, explanations shall be input within the time limit prescribed by the TWSE.
    An investor may make a written inquiry to the TWSE, with supporting documentation attached, concerning any failure by a TWSE listed company or TWSE secondary listed company to duly publish material information, and the TWSE may use the original inquiry or a summary of it to make inquiries of the company during regular business hours.
10    When the TWSE discovers any irregularity in securities trading pursuant to the Rules Governing Implementation of the Stock Market Monitoring System, it may complete a "Public Statement Concerning Material Information - Form (1)" (Appendix 1), and make inquiries by facsimile, telephone, or e-mail of the spokesperson or acting spokesperson of the company, or the litigious or non-litigious agent of the TWSE primary listed company or TIB primary listed company, or the secondary listed company's agent in the ROC. The company shall comply with the procedures under paragraph 1 of the preceding article with respect to the content of the inquiry.
    If a TWSE listed company or a TWSE secondary listed company or its agent in the ROC is for any other reason unable to input material information into the Internet information reporting system designated by the TWSE, and publishes the material information through the "Public Statement Concerning Material Information - Form (2)" (Appendix 2), the TWSE may publicly announce the information pursuant to regulations, or disclose it generally through the TWSE's information transmission system, or take other measures pursuant to the TWSE Rules Governing Implementation of the Stock Market Monitoring System, then forward photocopies to all securities brokers to publicly post at their places of business and display them in the TWSE's Investor Library for reference by the investing public.
 
   Chapter III Press Briefings Concerning Material Information
11    The term "material information used in a TWSE listed company's press briefing concerning material information" means the following items provided by the TWSE listed company on its own initiative, or investigated and verified at the initiative of the TWSE:
  1. The dishonoring of a negotiable instrument due to insufficient deposits, refusal by a financial institution to honor a transaction, or other loss of credit of a listed company or the parent or a subsidiary of the listed company; an announcement by the TWSE of the suspension of trading of the listed securities of the listed company due to a change in managerial control and a material change in the scope of business that the listed company undergoes as set forth in Article 50, paragraph 1, subparagraph 14, or Article 50-3, paragraph 1, subparagraph 11 of the TWSE Operating Rules.
  2. Any litigious or non-litigious matter, administrative disposition, contentious administrative procedure, provisional attachment, provisional injunction, or compulsory execution with respect to a TWSE listed company or its responsible person which has a material effect on the company's finances or business.
  3. A serious decrease in output or a complete cessation of work.
  4. A resolution by the board of directors of a TWSE listed company, its parent, or its subsidiary to petition a court for bankruptcy or reorganization, or a third party's petition to a court for its bankruptcy or reorganization, or a court ruling prohibiting transfer of the company's shares pursuant to relevant laws and regulations.
  5. The signing, termination, or rescission of an important memorandum of understanding, strategic alliance, plan for business cooperation, mutual non-competition agreement, or important contract, or a change in important content of a business plan, or the completed development of a new product, the successful development and formal beginning of mass production of trial products, or major progress in the development of a new product or technology, which has a material effect on the finances or business of the company.
  6. A resolution by the board of directors or a shareholders' meeting to apply for termination of TWSE listing for trading of its securities.
  7. A resolution by the board of directors for a capital reduction (excluding retirement of treasury shares), merger or consolidation, cancellation of a merger or consolidation, spin-off, acquisition, exchange, conversion or acquisition of shares, dissolution, or participation in the establishment of or conversion into a financial holding company, investment holding company, or subsidiary of such a company, or the inability to convene a subsequent shareholders' meeting by a company participating in a merger, consolidation, spin-off, acquisition, or acquisition of shares, or the veto of a proposal for merger, consolidation, spin-off, acquisition, or acquisition of shares, which has a significant impact on the company’s finance or business. This provision shall not apply under the following circumstances:
    1. A merger/acquisition conducted under Article 18, paragraph 7, Article 29, paragraph 6, Article 36, paragraph 1 and 2 of the Business Mergers and Acquisitions Act, where no shareholder resolution is required and the non-surviving enterprise or the non-TWSE or non-TPEx listed company subject to share conversion has share capital of less than NTD 1 billion, or a merger/acquisition conducted in accordance with Article 19, paragraph 1, Article 30, paragraph 1, Article 37, paragraph 1 of the Business Mergers and Acquisitions Act. If the merged/acquired enterprise is a company with shares having no par value, or a par value other than NT$10, the enterprise's net worth shall be substituted for the above-mentioned calculation of share capital.
    2. A capital reduction by a company on behalf of which a press briefing is held by a TWSE listed company , as specified in paragraph 2 of this article.
  8. Acquisition or disposal by the TWSE listed company of assets or right-of-use assets of related parties, where the monetary amount of the individual transaction, or of cumulative transactions with the same trading counterparty within 1 year, reaches 20 percent of the company's share capital, 10 percent of its total assets, or NT$300 million. In the case of a company with shares having no par value or a par value other than NT$10, 10 percent of the net worth shall be substituted for the above-mentioned calculation of 20 percent of share capital. However, this requirement shall not apply to transactions between the above-mentioned TWSE listed company and related parties in any of the following circumstances:
    1. Trading of domestic government bonds, repo/reverse repo trades of bonds; acquisition or disposal of any type of publicly placed open-end fund or financial product issued by a commercial bank that matures within three months with principal and interest guaranteed; information on derivatives trading that is to be filed before the 10th day of each month.
    2. A financial holding company, banking enterprise, insurance enterprise, securities enterprise, or any subsidiary thereof, acquiring or disposing of publicly offered open-end funds issued by its parent or subsidiary companies, or engaging in bill or bond transactions.
    3. Transactions with a parent company or a subsidiary of the TWSE listed company, or between subsidiaries of the TWSE listed company.
    4. Acquisition in the operation of construction business of real property under an arrangement of engaging others to build on the company's own land, engaging others to build on rented land, joint construction and allocation of housing units, joint construction and allocation of ownership percentages, or joint construction and separate sale.
    5. Transactions between the TWSE listed company and another subsidiary of the same parent company concerning the right-of-use assets of real property or right-of-use assets of equipment for business use.
  9. The occurrence of a disaster, group protest, strike, or environmental pollution, cyber security event, disposition by a competent authority or other material event resulting in material damage or impact to the company, where the estimated loss after deduction of the benefits calculated pursuant to the insurance contract exceeds 20 percent of the company's share capital or is NT$300 million or more. In the case of a company with shares having no par value or a par value other than NT$10, 10 percent of the net worth shall be substituted for the above-mentioned calculation of 20 percent of share capital.
  10. The voidance of a financial holding company's permit, or the voidance of a permit, by the relevant competent authority, of a TWSE listed company that is a bank, securities, futures, or insurance enterprise as defined in the Organic Act Governing the Establishment of the Financial Supervisory Commission.
  11. The occurrence of a material incident under Article 4, paragraph 1, subparagraph 4 or the former part of subparagraph 19, or any circumstance under subparagraph 27 or 46.
  12. Any major policy resolutions of the board of directors of the company, or any other circumstance with a material effect on shareholder equity or the price of its securities.
    For a major subsidiary of a TWSE listed company that is non-TWSE and non-TPEx listed and not registered as an emerging stock company, or a subsidiary that meets the standards of Article 7, paragraph 3, or a TWSE listed company that is a subsidiary in a parent-subsidiary relationship in which the domestic parent company is neither TWSE listed, TPEx listed, nor registered as an emerging stock company and encounters any circumstance under the subparagraphs of paragraph 1 herein, it will be deemed material information of a TWSE listed company, and a press briefing shall be held by the TWSE listed company.
12    If the circumstances of any subparagraph of the preceding article apply to a TWSE listed company, or any mass media reportage would be sufficient to affect the market price of the TWSE listed securities, or any reportage diverges from facts, the TWSE listed company shall complete a "Registration Form for Material Information Press Briefing" (Appendix 3) specifying the material information, and promptly send it to the TWSE for handling. Unless the TWSE deems it necessary to postpone handling the matter, the company shall promptly appoint a spokesperson or acting spokesperson to participate in a press briefing before the following trading day after the occurrence of the event or the broadcast media report to provide explanations to the news media. Where foreign laws or regulations impose time constraints concerning material information that a TWSE listed company is required to report on behalf of a foreign enterprise under these Procedures, the TWSE listed company may accommodate the time constraints on the foreign enterprise and make a simultaneous disclosure.
    To ensure timeliness, a TWSE listed company filling out a report pursuant to the preceding paragraph shall first transmit it by facsimile or other means and then deliver the original report. If the original report is delivered and any discrepancy with the facsimiled version is found, responsibility shall be borne by the TWSE listed company and it shall publicly announce and explain the discrepancy. A report submitted by a TWSE listed company shall be consistent with the facts, and shall bear the seals of the company and its responsible person or manager to indicate that they are responsible.
    The TWSE primary listed company or TIB primary listed company may appoint a spokesman or acting spokesman, or its litigious or non-litigious agent in the Republic of China, or an independent director, to hold a press briefing pursuant to the provisions in paragraph 1.
    If any matter under paragraph 1, subparagraphs 1, 2, 6, 7, or 10 of the preceding Article, any material event in the first part of subparagraph 19 of paragraph 1, Article 4, or any other matter that the TWSE deems material occurs with respect to a TWSE listed company, the TWSE listed company shall dispatch the above-mentioned personnel to the TWSE to hold a press briefing, which may not be held through video conferencing or other similar manner.
    Given the existence of any circumstance under paragraph 1, subparagraph 7 of the preceding article, the TWSE listed company shall convene a press briefing at the TWSE during the non-trading hours closest in time to the board of directors' resolution. If there is more than one participating TWSE listed company, the companies shall hold the press briefing simultaneously. If exceptional circumstances make it impossible to hold the press briefing in a timely manner and the matter is reported to and approved by the TWSE, the TWSE listed company shall immediately input the information or explanations into the TWSE-designated Internet information reporting system designated by the TWSE, and promptly hold a press briefing in lieu of the one originally to be held.
    Where necessary, a TWSE listed company may hold a press conference that is to be held in accordance with these Procedures, in the form of a material information briefing open to investor participants.
13     When the TWSE discovers or the mass media reports the existence of any material information under Article 11 with respect to a TWSE listed company, the TWSE may, where it deems necessary, send a notice, specifying the source and content of the information, to the TWSE listed company to request that it dispatch a spokesperson or acting spokesperson to hold a press conference or material information briefing by a deadline set by the TWSE, to provide explanations and clarifications.
 
   Chapter IV Halt and Resumption of Dealings
13-1    Where a TWSE listed company plans to publicly disclose or convene a board of directors meeting to adopt resolutions on any of the following before 5 P.M. on a business day, it shall apply to the TWSE for a halt of dealings, with a Halt Application submitted (Appendix 4) stating the reason(s) and relevant content, on the business day before the public disclosure or meeting, provided it may submit the application before 7:00 A.M. on the business day of the public disclosure or meeting in the event of an emergency preventing timely application:
  1. Serious decrease in output or complete stoppage of work.
  2. Any event set forth in Article 185 of the Company Act, except where the event has no material impact on shareholder equity or securities prices.
  3. A petition to court for bankruptcy or reorganization.
  4. Merger or consolidation, spin-off, acquisition, or swap, conversion or assignment of shares, or cancellation of any of the above, except where no shareholders' resolution is required for the merger or consolidation as under Article 18, paragraph 7, Article 19, paragraph 1, Article 29, paragraph 6, Article 30, paragraph 1, Article 36, paragraphs 1 and 2, Article 37, paragraph 1 of the Business Mergers And Acquisitions Act, or no material impact is caused to shareholder equity or securities prices.
  5. Completion of development of a new product, successful development and formal entrance into mass production of trial products, and major development progress of a new product or new technology, except where no material impact is caused to shareholder equity or securities prices.
  6. Other circumstances with a material effect on shareholder equity or securities prices.
    The TWSE may reject the aforementioned application if:
  1. The application is made where the circumstance in paragraph 1 does not occur.
  2. The halt is unnecessary as a public disclosure has been made by the TWSE listed company.
  3. The TWSE deems the application unjustified or deems a halt unadvisable.
13-2    The TWSE may give public notice of a halt of securities dealings of a TWSE listed company according to the following provisions:
  1. The TWSE finds upon deliberation that the application for a halt of dealings made by the TWSE listed company according to Article 13-1, paragraph 1, justified.
  2. Mass media reportage or other information indicates a circumstance with a material effect on the shareholder equity or securities prices of the TWSE listed company has occurred, said company is unable to provide a full explanation of the material circumstance, and the TWSE deems a halt of dealings necessary to comply with the needs of the exchange market or protect shareholder equity.
  3. The TWSE listed company is unable to provide a full explanation of the information relevant to the cause for the halt, and the TWSE deems it necessary to continue with the halt.
    Each halt of dealings shall last from at least one to not more than three business days and may continue to be enforced where necessary.
    A TWSE listed company is subject to a halt of dealings by the TWSE shall immediately report to the TWSE in the event of a material change to the cause for the halt.
13-3    Where a TWSE listed company to which any of the circumstances in Article 13-2, paragraph 1 applies is subject to a halt of dealings in its securities by the TWSE, it shall immediately fill out a Resumption Application (Appendix 5) to apply to the TWSE for resumption of dealings if it complies with the following provisions and none of the other circumstances in Article 13-2, paragraph 1 applies to it. The TWSE may give public notice of resumption of dealings in its listed securities:
  1. A full explanation is provided of the information relevant to the cause for the halt.
  2. The halt is no longer necessary due to a change of circumstances.
    The TWSE may directly give public notice of resumption of dealings in the listed securities of the TWSE listed company if said company complies with the above provisions but fails to apply for such resumption.
13-4    Procedures for halt and resumption applications shall established by TWSE listed companies and are subject to approval by resolution of their board of directors. The procedures shall expressly set forth the level with the final decision-making authority, which may not be lower than the level of president or its equivalent.
    Applications filled out by a TWSE listed company pursuant to Article 13-1, paragraph 1, and Article 13-3, paragraph 1, are governed by Article 12, paragraph 2 mutatis mutandis.
 
   Chapter V Sampling Checks and Penal Provisions
14    The TWSE may from time to time select TWSE listed companies according to the standards for sampling checks set forth below and require them to submit financial and business related materials or photocopies thereof for purposes of verifying material information disclosures and the timeliness, accuracy, and completeness thereof. When necessary, it may also carry out an on-site audit.
  1. Standards for sampling checks:
    1. Among securities for which information for attention in trading has been publicly announced, those securities with relatively many cumulative instances thereof in the current month.
    2. Companies that have published very little material information in the current month, or that have published material information of an unusual nature.
    3. Companies that are objects of complaints for failing to publish material information, delaying its publication, or publishing untrue material information.
    4. Obvious severe irregularities in operating conditions.
    5. Any circumstances the TWSE deems to require investigation and verification.
  2. Financial and business materials to be submitted:
    1. Minutes of board of directors meetings
    2. Trading certificates, vouchers, books and statements, and related materials.
    3. Relevant materials supporting the content of the material information.
    4. Other materials the TWSE deems need to be provided.
    When the TWSE deems necessary, pursuant to the listing contract, the TWSE Operating Rules, or these Procedures, it may make inquiries to a TWSE secondary listed company or its agent located in the ROC, or request that the company or its agent provide the relevant information.
15    If any of the following circumstances applies to a TWSE listed company, or a secondary listed company, the TWSE may request in writing improvement or impose on a case-by-case basis a penalty of NT$30,000. However, if the cumulative number of penalties imposed within the most recent one year reaches two or more (inclusive of the current penalty), or if the circumstances in an individual case are due to intent or material negligence, or have a material impact on shareholder equity or securities prices, the TWSE may impose a penalty of NT$50,000 to NT$5 million. A company that is required to take remedial action shall do so within the time limit prescribed by the TWSE, or a penalty of NT$50,000 to NT$5 million per instance may be imposed until the date of compliance.
  1. The company violates any provision of these Procedures concerning material information or investor conferences.
  2. The material information contains descriptions of an exaggerated nature or that resemble advertising or promotional language.
  3. The company arbitrarily publishes unconfirmed news or discloses information that diverges from fact.
  4. The information published does not conform with the principles for corporate governance in Article 2 of the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies, and it affects shareholder equity.
  5. The company fails to submit relevant sampling check materials within the time limit set by the TWSE.
    If an event under Article 5, paragraph 1, subparagraph 2 is found on the part of a TWSE secondary listed company, and the company fails to simultaneously report the event on the Internet information reporting system designated by the TWSE, or fails to simultaneously submit required documents and materials to the TWSE pursuant to Article 5, paragraph 2, then the TWSE, at its sole discretion, may impose a penalty of no less than NT$1 million and no more than NT$5 million. However, if the cumulative number of penalties within the most recent 1 year reaches two or more (inclusive of the current penalty), the current penalty may be increased to NT$5 million.
    The TWSE may request in writing rectification or impose a breach penalty of NT$50,000 on a TWSE listed company that violates any provision of these Procedures governing press briefings concerning material information and halt and resumption of dealings for each instance of violation, provided that if the cumulative number of penalties within 1 year reaches two or more (inclusive of the current penalty), a breach penalty of NT$100,000 shall be imposed as the current penalty. In the event that any individual case of violation is due to intent or material negligence, or has a material effect on shareholder equity or the price of securities, the TWSE may impose a breach penalty of NT$100,000 to NT$5 million. A TWSE listed company that is required to take remedial action shall do so within the time limit prescribed by the TWSE, or a breach penalty of NT$100,000 to NT$5 million per instance may be imposed until the day the action is carried out.
    If any circumstance set forth in any subparagraph of paragraph 1 applies to a TWSE listed company, or a TWSE secondary listed company, and the TWSE has imposed a penalty per instance and the company still fails to comply by the deadline and the circumstances of the particular case are severe, or if, after receiving notice from the TWSE requiring it to hold a press conference or apply for a halt and resumption of dealings, the TWSE listed company still fails to do so and the circumstances of the particular case are severe, the TWSE may alter the original trading method of the company's listed securities, suspend trading of the securities, or delist the securities pursuant to Article 49, Article 49-1, Article 50, Article 50-1, or Article 50-3 of the TWSE Operating Rules.
    A TWSE listed company, or a TWSE secondary listed company on which a penalty is imposed shall pay the penalty to the TWSE Finance Department within 5 days from receiving notice from the TWSE.
    If any circumstance under paragraph 1, subparagraph 3 is found on the part of a TWSE listed company or a TWSE secondary listed company, the TWSE shall compile the relevant information and submit it to the competent authority as a basis for it to take further measures.
16    Imposition of a penalty on a TWSE listed company or a TWSE secondary listed company due to a violation of these Procedures shall be disclosed in the "Section Designated for Violations by TWSE Listed Companies of Rules Governing Information Reporting, Material Information, and Press Briefings" on the Market Observation Post System.
 
   Chapter VI Supplementary Provisions
17    These Procedures shall take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner