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Amendments

Title：

Taiwan Stock Exchange Corporation Standards for Determining Changes in Managerial Control and Material Changes in the Scope of Business of Listed Companies  CH

Amended Date： 2021.03.31 
Categories： Primary Market > Management > Auditing and Review
Article Content Content Search Article No. Search Amended Article Legislative History Chinese

Title： Determination Standards for the Provisions of Article 50, Paragraph 1, Subparagraph 14, and Article 50-3, Paragraph 1, Subparagraph 11 of the Operating Rules of the Taiwan Stock Exchange Corporation(2019.04.15)
Date：
Article 3     The "period" in the term "change in managerial control within a certain period of time before or after said change" referred to in Article 50, Paragraph 1, Subparagraph 14 and Article 50-3, Paragraph 1, Subparagraph 11 of the TWSE Rules means the period between the fiscal year immediately preceding the change in managerial control of a listed company and the period from the latest term and eight terms of financial reports submitted after the change in managerial control.
    The term "material change in the scope of business" referred to in Article 50, Paragraph 1, Subparagraph 14 and Article 50-3, Paragraph 1, Subparagraph 11 of the TWSE Rules means any of the following circumstances:
  1. An increase occurs in the main business activities (meaning the operating revenue generated from said business activities amounts to 20% or more of the company's total operating revenue), and the aggregate amount of increased operating revenue generated from said business activities reaches 50% or more of the operating revenue of the current term.
  2. A change occurs in the business activities that generate 50% or more of the operating revenue in the preceding fiscal year leading to the operating revenue of said business activities being lower than 20% of the operating revenue of the current term.
  3. The net disposing book value of the property, plant and equipment, and their right-of-use assets,reaches 100% of the net book value of the property, plant and equipment, and their right-of-use assets, as at the date of the final balance sheet.
  4. The acquiring amount of land held for construction site, construction in progress or buildings and land held for sale or the property, plant and equipment that are not within the original business scope, and their right-of-use assets, reaches 30% or more of the total asset value as at the date of the final balance sheet.
  5. Other special circumstances deemed by the TWSE as a material change in the scope of business due to the scope or nature of or special situations concerning the business activities.
    Application of Subparagraphs 4 of the preceding Paragraph may be waived if the listed company is in the building materials construction industry before and after its change in managerial control.