Taiwan Stock Exchange - Rules & Regulations Directory
Regulations Governing Securities Firms
2020.10.29 (Articles 14-6, 21, 32-1, 35-2, 68-1 amended,English version coming soon)
Current English version amended on 2020.02.03
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Regulations Governing Securities Firms(2016.08.02)
A securities firm, unless concurrently operated by a financial institution and subject to other relevant acts or regulations, shall, if it has already issued securities pursuant to the Act, set aside a 20 percent special reserve from the annual after-tax profit pursuant to Article 41 of the Act. However, if the accumulated amount reaches the paid-in capital amount, no further fund needs to be set aside.
If it has not issued securities pursuant to the Act, it shall set aside a 20 percent special reserve from the annual after-tax profit. However, if the accumulated amount reaches the paid-in capital amount, no further fund needs to be set aside.
The FSC may increase or decrease the percentages under the preceding two paragraphs based on business needs.
The special reserve referred to in the preceding three paragraphs shall not be used for purposes other than covering the losses of the company or, when the accumulated special reserve reaches 50 percent of the amount of paid-in capital, half of it may be used for capitalization; provided, that this rule shall not apply if the FSC has provided otherwise.
Resolution：1024 x 768
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English version of regulations are translated by Baker McKenzie Taipei Office.