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Article 22
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A securities firm shall separately disclose in the notes to the financial reports information on the following events between the securities firm and its subsidiaries during the current period, and on parent-subsidiary transactions:<br/>1. Information on material transactions:<br/>A. Lending funds to others.<br/>B. Providing endorsements or guarantees for others.<br/>C. Acquisition of real estate reaching NT$300 million or 20 percent of paid-in capital or more.<br/>D. Disposal of real estate reaching NT$300 million or 20 percent of paid-in capital or more.<br/>E. Handling fee discounts on transactions with related parties totaling NT$5 million or more.<br/>F. Accounts receivable from related parties reaching NT$100 million or 20 percent of paid-in capital or more.<br/>G. Others: The business relationship between the parent and the subsidiaries and between each subsidiary, and the circumstances and amounts of any material transactions between them.<br/>2. Information on investees: If the securities firm directly or indirectly exercises significant influence or control over, or has a joint venture interest in, an investee company that is not in the Mainland Area, it shall disclose information on the investee company, showing the name, location, principal business activities, original investment amount, shareholding at the end of the period, profit or loss for the period, recognized investment gain or loss, and cash dividends.<br/>3. Information on overseas branches and representative offices: The securities firm shall provide information on its overseas branches and representative offices, disclosing the locations, business activities, inward and outward remittances of operating capital, the branch's profit or loss for the period, and any accounts and transactions with the head office.<br/>4. Information on investments in the Mainland Area:<br/>A. If the securities firm directly or indirectly exercises significant influence or control over, or has a joint venture interest in, an investee company in the Mainland Area , it shall disclose the information on any investee company in the Mainland Area, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, shareholding ratio, current profit or loss, and recognized investment gain or loss, carrying amount of the investment at the end of the period, repatriated investment gains, and limit on the amount of investment in the Mainland Area.<br/>B. When the securities firm recognizes investment gain or loss using the equity method or prepares consolidated financial statements with respect to a Mainland Area investee company, the recognition or preparation shall be based on the investee company's financial reports audited and attested by an international CPA firm having a business cooperation relationship with an R.O.C. CPA firm, provided that when preparing interim consolidated financial reports, the recognition or preparation may be based on the investee company's financial reports reviewed by an international CPA firm having a business cooperation relationship with an R.O.C. CPA firm.<br/>5. Information on major shareholders: a securities firm whose stock is listed on the TWSE or listed on the TPEx shall disclose the names, numbers of shares held, and shareholding percentages of shareholders who hold 5 percent or more of the securities firm's equity. For this purpose, the securities firm may request the centralized securities depository enterprise to provide relevant information.<br/>If the shares issued by a securities firm have a par value other than NT$10, for the calculation of a transaction amount of 20 percent of paid-in capital under subparagraph 1, items C, D, and F of the preceding paragraph, 10 percent of the equity attributable to owners of the parent as stated in the balance sheet shall be substituted.
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