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Article NO. Content


Directions Concerning Securities Market Regulatory Matters for TWSE Listed Companies and Their Directors, Supervisors, and Major Shareholders  CH

Amended Date: 2012.07.00 
Categories: Corporate Governance
12     XII.Obligation to accept to undergo FSC inspection and furnish related information and reports
  1. FSC inspection:
  2. In order to protect public interest and the interests of investors, the FSC may, prior to the approval of a public offer or issuance, either require the issuer, securities underwriters, or other related parties to submit reference materials or reports, or make a direct examination of relevant documents and accounts. The FSC may further, at any time after the issuance of securities, order the issuer to submit financial and business reports or makes a direct examination of the financial and business conditions of the issuer (Securities and Exchange Act §38).
  3. When the FSC deems it necessary, it may from time to time appoint a certified public accountant, lawyer, engineer, or any other professionals or technicians to examine the financial and business conditions and related documents, statements, and account books of the issuer, securities underwriter, or other related parties and to submit reports or opinions to the FSC, at the expense of the examinee. When shareholders continuously holding, for a period of one year or longer, 3% or more of the total number of the outstanding shares of a company whose stock is listed on the stock exchange or traded over-the-counter deem that a specific matter materially damages their interests, they may apply to the FSC with reasons, related evidence, and an explanation of the necessity of an inspection provide, requesting for inspection of the specific matter, related documents, and account books of the issuer. If the FSC deems it necessary, it will proceed pursuant to the preceding paragraph (Securities and Exchange Act §38-1).
  4. FSC disciplinary actions:
  5. During its examination of the disclosed financial reports and other reference materials or reports of the issuer, or by its direct investigation of the financial and business conditions of the issuer, the FSC may issue a corrective order and additionally impose penalties pursuant to Article 174, Paragraph 1, Subparagraph 4 or 5 of the Securities and Exchange Act if it finds that the issuer has failed to comply with an act or regulation (Securities and Exchange Act §39).
  6. TWSE request for information:
  7. In accordance with regulations or upon valid reasons, the TWSE may request a listed company to provide information related to the listed securities within a limited time. Any financial or business reports or information filed by a listed company may be publicly announced or displayed, in original or abstract form, by the TWSE for viewing by the public. The listed company shall be responsible for any false or untrue statements made in the preceding reports or information (Operating Rules §53).