If a foreign issuer that applies for a TWSE primary listing of its stock is part of a consortium and complies with the provisions of this chapter, but does not meet all of the conditions below such that the TWSE deems the listing inappropriate, the TWSE shall not approve its stock listing:
Subparagraph 5 of the preceding paragraph need not be applied if circumstances under that subparagraph are due to special industry characteristics, conditions of supply and demand in the market, or another legitimate reason.
- There is no mutual competition between the primary businesses or primary products of the applicant company and the companies in the same consortium However, this requirement shall not apply if the applicant company has independent operational decision-making ability.
- The products that the applicant company sells to other companies within the same group enterprise shall have the potential for the development of independent marketing.
- If the applicant company and a company in the same consortium have a business relationship, they shall each adopt concrete, written systems of operational guidelines for their mutual finances and business, and after having those guidelines approved by the board of directors, shall declare or undertake in writing that there are no non-arms-length transactions. If they do not have a business relationship, the applicant company shall undertake in writing that in the event of any subsequent business relationship, there will be no non-arms-length transactions.
- There shall be no material irregularities in its financial or business condition or in its above-cited operational guidelines in comparison with other companies in the same industry.
- The amount of its purchases and operating revenue from companies in the consortium in the fiscal year in which it applies for listing, and in the most recent 2 fiscal years, does not exceed 50 percent, provided that this restriction shall not apply to the amount of purchases and operating revenues from the parent company or a subsidiary.