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Article 51-3
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Where a single listed company, pursuant to Article 31 of the Business Mergers and Acquisitions Act, converts its shares to another newly established or already-listed existing company, and becomes a 100 percent held subsidiary of such newly established or already-listed existing company, after this Corporation has reported and obtained approval from the Competent Authority, the securities of the newly established or already-listed existing company shall be listed after completion of applicable listing procedures, and the listing of the securities of the original listed company shall be terminated on the record date of the share conversion.
The provisions of the preceding paragraph shall also apply in cases where a single or multiple company(ies) limited by shares convert shares into a newly established or already-listed existing company; provided that if an unlisted (non-OTC) company(ies) converts shares together therewith, the operating revenue or operating income from said unlisted (non-OTC) company(ies) shall not exceed 50 percent of the total operating revenue or operating income on the pro-forma post-conversion consolidated financial statements of said newly established or already-listed existing company for the most recent fiscal year, and said unlisted (non-OTC) company(ies) limited by shares shall conform to the provisions of all the following subparagraphs:
1. Profitability shall conform to Subparagraph 3 of Paragraph 1 of Article 4 of this Corporation's Criteria for Review of Securities Listings.
2. There shall not exist any circumstance specified in Subparagraphs 1, 4, 5, 8, 10, or 13 of Paragraph 1 of Article 9 of this Corporation's Criteria for Review of Securities Listing.
3. The financial report for the most recent fiscal year shall have been audited by a CPA approved by the Competent Authority to audit public companies and issued an unqualified opinion from such CPA.
If any unlisted (non-OTC) company included in a conversion as set out in the preceding paragraph is a foreign company, the provisions of Article 51, Paragraph 2, Subparagraph 4 shall apply mutatis mutandis to its financial information and matters requiring analysis and explanation.Where an investment holding company is established by means of share conversion in accordance with Paragraph 1 or Paragraph 2, such investment holding company shall comply with the provisions of Subparagraphs 1, 2, 4, 5, 7, 8, and 9 of Paragraph 1 of Article 4 of this Corporation's Criteria for Review of Listing Applications by Investment Holding Companies before it may be listed.
Where circumstances in Paragraph 1 or 2 apply to a company limited by shares, the listed company whose converted shares are anticipated to account for the greatest proportion of the anticipated issued shares of the newly established or already-listed existing company shall carry out with this Corporation the various procedures set forth in the subparagraphs hereinbelow on behalf of all the companies whose shares are being converted, and, where this Corporation has inspected all the documents submitted by the company for completeness and its Administration Department has examined them and found them in compliance with regulations, after approval has been applied for and obtained from the Competent Authority, the trading of such company's(ies') originally listed securities shall be suspended two trading days prior to (and non-inclusive of) the record date of the share conversion.
1. An Application for Listing of Shares of a Newly Established Company or Listed Company Receiving a Conversion of Shares shall be completed and filed, along with all specified attachments, with this Corporation no later than 15 trading days prior to (and non-inclusive of) the record date of the share conversion.
2. An Application for Suspension of Share Transfers shall be completed and this Corporation shall directly make an announcement to the market of suspension of amendments to entries in the shareholder rosters of the listed company(ies) among the companies participating in the share conversion.
Where pursuant to Article 27 of the Business Merger and Acquisition Act a listed company makes a general assignment to an investment holding company incorporated under Article 185, Paragraph 1, Subparagraph 2 of the Company Act and such investment holding company complies with Subparagraphs 1, 2, 4, 5, 7, 8, and 9 of Paragraph 1 of Article 4 of this Corporation's Criteria for Review of Listing Applications by Investment Holding Companies, and [the listed company] holds 100 percent of the assignee company's shares, [the listed company] shall apply to this Corporation for amendment of content of listed securities pursuant to Article 45. However, the provisions of Subparagraph 5 of Paragraph 1 of Article 50-1 shall not apply to any change in business scope.
Under the circumstances set forth in Paragraphs 1, 2, or the preceding paragraph, where before the conversion the company is a listed (or OTC-listed) company, those shares already duly placed in centralized custody by directors, supervisors, and major shareholders thereof at the time of initial listing (or OTC listing) shall remain in centralized custody after the conversion until the expiration of the custody period; if before the conversion the company was an unlisted (non-OTC) company, and it is anticipated that the converted shares will account for 10 percent or more of the shares anticipated to be issued by the company that is the assignee of the shares, the directors, supervisors, and major shareholders of such unlisted (non-OTC) company shall still place in centralized custody the shares they hold in the company that is the assignee of the shares pursuant to applicable provisions of this Corporation's Criteria for Review of Securities Listings.
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Article 59
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When determining the daily fluctuation limits of securities listed for initial public offering using the competitive auction process, unless otherwise provided by law, reference shall be made to the public offering price before the listing date. Where a securities listed for initial public offering is already traded over-the-counter, and is exempted from the requirement of public offering before its listing, when determining its daily fluctuation limit, reference shall be made to the final execution price on the latest trading day or the reference price on the latest trading day before the cessation of over-the-counter trading. Where it is required by regulations that a proportion of securities be reserved for offering to the public, the following shall be applicable:
1. Where the over-the-counter trade has been terminated before the public offering, the daily fluctuation limits shall be determined with reference to the public offering price.
2. Where the over-the-counter trade is terminated after the public offering, the daily fluctuation limits shall be determined with reference to the final execution price on the latest trading day or the reference price on the latest trading day before the cessation of over-the-counter trading.
The daily fluctuation limits for common shares listed for initial public offering of listed companies converting shares into a newly established company under Article 51-1 or Article 51-3 shall be calculated on the basis of the following reference price: the price arrived at by multiplying (the closing price on the last trading day of the common shares of the listed company whose converted common shares are anticipated to account for the greatest proportion of the anticipated issued common shares of the newly established company) by (the number of shares required for exchange of one new share). The daily fluctuation limits for securities other than common shares shall be calculated on the basis of the following reference price: the price arrived at by multiplying (the closing price on the last trading day of the listed security or OTC security anticipated to account for the highest proportion of those converted into the security) by (the number of shares [or trading units] required for exchange of one share [or one trading unit] of the new security).
The daily fluctuation limits on initial listings of new capital stock, certificates evidencing right to subscribe to new stocks, and certificate evidencing payment shall be determined with reference to the closing price of the original stock on the previous day minus the value difference on rights; provided where the difference on rights cannot be determined, the fluctuation limit shall be determined with reference to the closing price of the original stock on the previous day.
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