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Article 6
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If a company with exchange listed-securities violates these Rules, or discovers on its own after the deadline for reporting that reported information was erroneous and applies to make corrections, the TWSE may impose a breach penalty of NT$10,000; provided, however, if the error or omission was discovered by the Competent Authority, the TWSE, or an investor and is verified upon investigation, the TWSE may impose on a case-by-case basis a breach penalty of NT$30,000; provided, however, where the cumulative number of penalties within the most recent year has reached two or more (inclusive of the current penalty), or where the circumstances in an individual case are due to deliberate intent or material deficiency, or have a material impact on shareholder equity or securities price, the TWSE may impose a breach penalty of NT$50,000 to NT$1 million. In all cases, the company shall furthermore be notified via letter to make supplementations or corrections within two business days after delivery of the letter. A company failing to make supplementations or corrections by the deadline shall be subject to a further breach penalty of NT$10,000 for each business day beyond the deadline until the date of supplementation or correction. In serious cases, the TWSE may make dispositions pursuant to Article 49 or Article 50 of the TWSE Operating Rules.
If a securities investment trust enterprise listing beneficial certificates, fund shares, or investment units of a closed-end fund or exchange-traded fund, or the master agent of an offshore fund institution, violates these Rules or discovers on its own after the deadline for reporting that reported information was erroneous and applies to make corrections, the TWSE may impose on the securities investment trust enterprise or offshore fund institution a breach penalty of NT$10,000; provided, that if the error or omission was discovered by the Competent Authority, the TWSE, or an investor, and is verified upon investigation, a breach penalty of NT$50,000 shall be imposed, and the enterprise shall furthermore be notified via letter to make supplementations or corrections within two business days after delivery of the letter. An enterprise failing to make supplementations or corrections by the deadline shall be subject to a further breach penalty of NT$10,000 for each business day beyond the deadline until the date of supplementation or correction.
Breach in the input of material information by an exchange-listed company or a primary exchange-listed or secondary exchange-listed company shall additionally be handled under Article 9 of the TWSE Procedures for Verification and Disclosure of Material Information of Companies with Exchange-Listed Securities; breach in the input of material information by a securities investment trust enterprise listing beneficial certificates of a closed-end fund or exchange-traded fund shall additionally be handled under Article 7 of the TWSE Procedures for Verification and Disclosure of Material Information of Securities Investment Trust Companies with Exchange-Listed Securities Investment Trust Funds.
By the 10th day of each month, the TWSE shall publicly announce on the centralized securities exchange market the circumstances of all breach penalties imposed during the preceding month for violations of these Rules by exchange-listed companies, and shall forward notice of the same to the Competent Authority.
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