When a foreign issuer files for initial public issuance of stock, the FSC may reject the filing if any of the following circumstances exists:
- The attesting CPA issues an audit report containing a disclaimer of opinion or adverse opinion.
- The attesting CPA issues an audit report containing a qualified opinion that affects the fair presentation of the financial report.
- The case review forms prepared by the foreign issuer or reviewed by the attesting CPA show any violation of laws or regulations or the articles of incorporation, and the circumstances are serious.
- The legal opinion issued by a lawyer indicates any violation of laws or regulations or the articles of incorporation, and the circumstances are serious.
- Any of the following circumstances arise in the CPA special audit of the efficacy of the internal control system design or implementation:
- Failure of the audited company to provide a statement regarding the efficacy of the internal control system design or implementation.
- The CPA review report indicates material deficiencies in the design or implementation of the audited company's internal control system and failure to improve them, or contains a disclaimer of opinion.
- Employee stock warrants or equity securities have previously been issued under laws or regulations of the country of registration, but concomitant public issuance is not conducted for the warrants along with the stock.
- The FSC discovers a violation of law or regulation, where the circumstances are serious.
- A foreign issuer in which individuals, juristic persons, groups, or other institutions from the Mainland Area have direct or indirect shareholding or capital contribution exceeding 30 percent, or effective control, fails to obtain the special permission from the FSC.
- The FSC otherwise deems necessary to protect the public interest.