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Amendments

Title:

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

Amended Date: 2020.08.17 
Categories: Primary Market > Management > Information Disclosure

Title: Taiwan Stock Exchange Corporation Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities(2016.08.19)
Date:
Article 4     "Material information of TWSE listed companies" means the following matters:
  1. Dishonor of a negotiable instrument due to insufficient deposits and 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, after dishonor of a negotiable instrument of a listed company due to insufficient deposits or refusal of a financial institution to honor a transaction of a listed company, any alteration of trading method, suspension of trading, or delisting of the stock thereof, and the status of any application to restore the original conditions.
  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 primary listed company, where there is no independent director with a registered household address in the ROC.
  7. Change of certified public accountant (CPA) for any reason other than internal adjustments within the certifying accounting firm.
  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, research and development officer, chief internal auditor, or in the case of a primary listed company, of its litigious or non-litigious agent.
  9. Change in accounting 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 development progress 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, and venue of an investor conference 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, 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 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 on the date for convening an ordinary shareholders meeting or special shareholders meeting, the cause or subjects of such a meeting, or 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 of internal control fraud, non arms-length transaction, or defalcation of assets.
  20. Where any of the following provisions is met:
    1. 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 30 or 31 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 open-end fund.
    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 monetary loans to other persons 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 fiscal year.
  26. Occurrence of a disaster, group protest, strike, environmental pollution event, or any other material event, resulting in any of the following situations: (1) where the company incurs a material loss; (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 and further a restatement of the financial report; a CPA issues an audit or review report containing an opinion other than an unqualified or modified unqualified opinion on a publicly disclosed and filed annual or semiannual financial report, except in cases where the CPA issues a qualified audit or review report for the reason of annual amortization of losses, as permitted by a law or regulation, or for the reason that the amount of investment by a non-major subsidiary or of investment accounted for using the 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. (deleted)
  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 GTSM 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.
  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 circumstance set forth in Article 50, paragraph 1, subparagraph 14, or Article 50-3, paragraph 1, subparagraph 11 of the TWSE Operating Rules exists, and the TWSE has announced suspension of trading of the listed securities or 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 by the board of directors or a shareholders meeting to apply for termination of listing for trading of its securities, or any material change in such a matter.
  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 GTSM 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 GTSM 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 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. 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.
Article 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 suspension, 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.
     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.
Article 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-GTSM 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-GTSM 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-GTSM 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 fiscal year.
  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 fiscal year.
    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-GTSM 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.
Article 9     If the TWSE discovers that a TWSE listed company or TWSE secondary listed company has failed to publish any material information required 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 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 beginning 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.
Article 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.
  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 development progress 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. This provision shall not apply under the following two 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-GTSM 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 major subsidiary or by a subsidiary of an investment holding company or a financial holding company as specified in Article 7, paragraph 3.
  8. Transactions between the TWSE listed company and related parties: acquisition or disposal of real property, or acquisition or disposal of assets other than real property, 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 government bonds, repo/reverse repo trades of bonds, or subscription or redemption of domestic money market funds.
    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.
  9. The occurrence of a disaster, group protest, strike, or environmental pollution event, disposition by a competent authority or other material event resulting in material damage 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 any circumstance under Article 4, paragraph 1, subparagraphs 4, 19, 27, 40 or 46, except where the TWSE has announced the halt or resumption of dealings in the listed securities in accordance with these Procedures.
  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, 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, GTSM 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.
Article 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.