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Article 171
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A person who commits any of the following offenses shall be punished with imprisonment for not less than three years and not more than ten years, and in addition thereto, a criminal fine of not less than NT$10 million and not more than NT$200 million may be imposed:
1. Violation of paragraph 1 or paragraph 2 of Article 20, paragraph 1 or paragraph 2 of Article 155, or paragraph 1 or 2 of Article 157-1.
2. A director, supervisor, managerial officer or employee of a company that has issued securities under this Act directly or indirectly causes the company to conduct trades that are disadvantageous and are inconsistent with regular business practice, causing substantial damage to the company.
3. A director, supervisor, or managerial officer of a company that has issued securities under this Act, with the intent to procure a benefit for themselves or for a third person, acts contrary to their duties or misappropriates company assets, thus causing damage of NT$5 million or more to the company.
If the value of property or property interests gained by the commission of an offense under the preceding paragraph is NT$100 million or more, a sentence of imprisonment for not less than seven years shall be imposed, and in addition thereto, a criminal fine of not less than NT$25 million and not more than NT$500 million may be imposed.
A person who commits an offense under paragraph 1, subparagraph 3, causing damage of less than NT$5 million to the company, shall be punished under Articles 336 and 342 of the Criminal Code.
A person who commits an offense under the preceding 3 paragraphs and subsequently voluntarily surrenders themselves, if they voluntarily hand over the proceeds of the crime in full, shall have their punishment reduced or remitted. If, in addition, another principal offender or a joint offender is captured as a result, their punishment shall be remitted.
A person who commits an offense under paragraphs 1 to 3 and confesses during the prosecutorial investigation, if they voluntarily hand over the proceeds of the crime in full, shall have their punishment reduced. If, in addition, another principal offender or a joint offender is captured as a result, their punishment shall be reduced by one-half.
Where the value of property or property interests gained by a person through the commission of an offense under paragraph 1 or 2 exceeds the maximum amount of the criminal fine, the fine may be increased within the scope of the value of the property or property interests gained; if the stability of the securities market is harmed, the punishment shall be increased by one-half.
If the proceeds of a crime committed under paragraphs 1 to 3 belong to the offender or were obtained by a natural person, juristic person, or unincorporated body other than the offender under a circumstance set out in Article 38-1, paragraph 2 of the Criminal Code, the proceeds shall be confiscated, unless they shall be returned to a victim, third person, or person who is entitled to claim for damages.
A person who violates Article 20, paragraph 1 or 2, Article 155, paragraph 1 or 2, or Article 157-1, paragraph 1 or 2, as applied mutatis mutandis under Article 165-1 or 165-2, shall be punished under the provisions of paragraph 1, subparagraph 1, and of paragraph 2 up to the preceding paragraph hereto.
The provisions of paragraph 1, subparagraphs 2 and 3, and paragraphs 2 to 7 shall apply to the directors, supervisors, managerial officers, or employees of a foreign company.
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Article 174
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A person who commits any of the following offenses shall be punished with imprisonment for not less than one year and not more than seven years, and in addition thereto, a criminal fine of not more than NT$20 million may be imposed:
1. Making of false statements on the application materials required under Article 30, Article 44, paragraphs 1 to 3, or Article 93, or Article 30 as applied mutatis mutandis under Article 165-1 or 165-2, of this Act.
2. Making and dissemination to the public of false information with regard to the market value of securities or important matters relating to approval of subscription or offering.
3. The violation of paragraph 1 of Article 32 by an issuer, its responsible personnel or employees, in instances where no applicable exemption from liability is established pursuant to paragraph 2 of the same Article.
4. Any false statement in the content of any account book, form/statement, document, or other reference or report material an issuer or public tender offeror or related party thereof, a securities firm or its principals, securities association, stock exchange, or an enterprise referred to in Article 18, is required to provide pursuant to an order of the Competent Authority.
5. Any false statement in the content of any account book, form/statement, voucher, financial report, or other business document of any issuer, public tender offeror, securities firm, securities association, stock exchange, or an enterprise referred to in Article 18, required by law or by an order issued by the Competent Authority pursuant to law.
6. Any false statement in the content of a financial report under the preceding subparagraph by a managerial officer or accounting officer who signs or seals the financial report. However, the punishment may be reduced or remitted if the person has submitted a corrective opinion and provided evidence in a report to the Competent Authority before any other person has brought a complaint or the Competent Authority or a judicial agency has commenced an investigation.
7. With respect to an issuer or to trading in any specific securities, based on false information, making investment judgments, and expressing them by means of newspaper, written material, broadcast, film or other means.
8. Any director, managerial officer, or employee of an issuer who, in violation of laws or regulations, the articles of incorporation, or by acting beyond the scope of authority granted by the board of directors, loans company funds to a third party or uses company assets to provide security, a guarantee, or endorsement of a negotiable instrument for a third party, thereby causing substantial harm to the company.
9. Counterfeiting, altering, destroying, concealing, or obscuring working papers or relevant records or documents with the intent to impede inspection by the Competent Authority or investigation by a judicial agency.
A person who commits any of the following offenses shall be punished with imprisonment for not more than five years, and a criminal fine of not more than NT$15 million may be imposed or additionally imposed:
1. Issuance by a lawyer of a false or untrue opinion regarding any contract, report, or document of a company or a foreign company relating to the public offering, issuance, or trading of securities.
2. A certified public account, with respect to any material falsehood or error in a financial report, document, or information reported or published by a company or foreign company, failing to fulfill their audit duties and issuing a false report or opinion; or a CPA, with respect to a material falsehood or error in a financial report of company or a foreign company, failing to perform auditing in accordance with applicable laws and regulations and generally accepted audit principles, resulting in the failure to point out the material falsehood or error.
3. Violation of Article 22, paragraphs 1 to 3.
If the commission of an offense under the preceding paragraph severely affects the rights or interests of shareholders or harms the stability of the securities market, the punishment may be increased by one-half.
If a personnel member or employee of an issuer commits an offense in subparagraph 6 of paragraph 1, and the offense is minor, the punishment may be reduced.
The Competent Authority shall render a disposition suspending attestation work by a CPA who violates subparagraph 2 of paragraph 2.
If a foreign company is an issuer, any violation of paragraph 1, subparagraphs 2 to 9 by the foreign company or a director, managerial officer, employee, or accounting officer of the foreign company shall be punished under paragraphs 1 and 4.
A person who violates Article 22 as applied mutatis mutandis under Article 165-1 or 165-2 shall be punished under paragraphs 2 and 3.
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