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Article 17
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An issuer shall separately disclose in the notes to the financial reports information on the following events between the issuer and its subsidiaries during the current period, and on parent-subsidiary transactions:
- Information on significant transactions:
- Lending funds to others.
- Providing endorsements or guarantees for others.
- Holding of securities at the end of the period (excluding the portion held due to investment in a subsidiary or an associate, and the portion held due to an interest in a joint venture).
- Aggregate purchases or sales of the same securities reaching NT$300 million or 20 percent of paid-in capital or more.
- Acquisition of real estate reaching NT$300 million or 20 percent of paid-in capital or more.
- Disposal of real estate reaching NT$300 million or 20 percent of paid-in capital or more.
- Purchases or sales of goods from or to related parties reaching NT$100 million or 20 percent of paid-in capital or more.
- Accounts receivable from related parties reaching NT$100 million or 20 percent of paid-in capital or more.
- Trading in derivative instruments.
- Others: The business relationship between the parent and the subsidiaries and between each subsidiary, and the circumstances and amounts of any significant transactions between them.
- Information on investees:
- If the issuer directly or indirectly exercises significant influence or control over, or has a joint venture interest in, an investee company 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, and recognized investment gain or loss.
- The issuer is exempted from the requirements of items A to D of the preceding subparagraph when the investee company it controls directly or indirectly is a financial, insurance, or securities enterprise.
- Information on investments in the Mainland Area:
- If the issuer 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 information on the investee company, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, shareholding ratio, profit or loss for the period 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.
- Any of the following significant transactions with investee companies in the Mainland Area, either directly or indirectly through a third area, and their prices, payment terms, and unrealized gains or losses:
- The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
- The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
- The amount of property transactions and the amount of the resultant gains or losses.
- The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.
- The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
- Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services.
- When the issuer 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 made based on the investee company's financial reports audited and certified by an international accounting firm having a business cooperation relationship with an R.O.C. accounting firm, provided that when preparing interim consolidated financial reports, the recognition or preparation may be made based on the investee company's financial reports reviewed by an international accounting firm having a business cooperation relationship with an R.O.C. accounting firm.
- Information on major shareholders: an issuer 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 issuer's equity. For this purpose, the issuer may request the centralized securities depository enterprise to provide relevant information.
If the shares issued by an issuer have no par value or a par value other than NT$10 per share, the threshold transaction amount of 20 percent of paid-in capital as set out in subparagraph 1, items D to H of the preceding paragraph shall be replaced by 10 percent of equity attributable to owners of the parent as stated in the balance sheet.
The amounts or balances of the transactions referred to in paragraph 1, subparagraph 3, item B shall be presented separately if they reach 10 percent or more of the issuer's total transaction amount or balance of that respective category, but otherwise they may be presented in the aggregate.
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