| Article 50 |
Where an issuer applies for issuance of employee stock warrants or new restricted employee shares, the FSC may reject the application upon the occurrence of any one of the following events:
- The applicant has been posting losses for the most recent 2 consecutive years; provided that the said restriction need not apply to the case where the business nature justifies longer preparation period or where a sound business plan is presented to demonstrate capability of improving profitability.
- Its assets are insufficient to cover debts.
- Major default occurs which has yet to be settled, or less than 3 years have elapsed since the settlement thereof.
- Failure of the issuer, which already issued employee stock warrants or new restricted employee shares, to perform terms and conditions thereof, and the situation has not been improved, or less than 3 years have elapsed since the improvement thereof.
- Where the FSC deems it necessary to reject or disapprove the issuer's application to protect the public interests.
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