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17
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Where an issuing company referred to in the immediately preceding article other than a government-owned enterprise, in the past two fiscal years, contracted with any construction company with an annual contract sum in excess of NT$200 million, or the contract sum did not exceed NT$200 million but the construction company is a related party of the issuing company, then in each of the said two fiscal years the following provisions shall have been complied with:
- The construction company must be a Class A construction firm; its financial statements and gross profit gained from each individual project in the most recent two fiscal years shall each have been jointly audited and attested by two CPAs of an accounting firm.
- The gross profit for each individual project undertaken by the issuing company and construction company in the most recent two fiscal years does not show abnormal circumstances.
- The contracting process, formation of the contract price, and payment terms have been evaluated by a professional institution as reasonable.
- The construction company did not in the most recent two years materially violate any relevant building and construction laws and regulations, nor did the construction company materially breach any construction contract with a development company in the most recent two years.
- There has been no unusual or abnormal fund transmission between the issuing company and the construction company.
- There does not exist between the issuing company and the construction company any of the events set forth in Article 9, paragraph 1, subparagraph 2 hereof.
If the issuing company and the construction company are not related parties, and a complete internal control system has been established, and the bidding procedures and payment method for contracting meet trade practices, the application of the provisions in subparagraphs 1 to 3 of the preceding paragraph may be excluded.
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