| Article 6 |
Risk assessment (supplementing Article 9 of the Prospectus Regulations):
- An issuing company with subsidiaries meeting one of the standards of a "major subsidiary" as provided in Article 3, Paragraph 2 of the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Article 5 of the Regulations for Auditing and Attestation of Financial Statements of Financial Institutions by Appointed Certified Public Accountants in the last fiscal year or the fiscal year of the listing application shall additionally include an exposition on the risks of the subsidiaries.
- A Foreign Issuing Company shall additionally explain various risks clearly, such as the overall economy, any changes in the political and economic environments, foreign exchange controls, taxes and relevant laws and regulations of its place of registration and major places of operation, and whether such places recognize the effect of conclusive judgments of Taiwan civil courts, and also state the response measures undertaken.
- A domestic issuing company or foreign issuer applying for the initial listing of stocks on the Taiwan Innovation Board shall additionally describe its key core technologies and ability to innovate or innovative operational model, and also the possible risks to arise out of any changes to the material technologies, products, policies, operational models, or core-technology personnel, together with the countermeasures taken. Where the circumstance in Article 31, paragraph 1, subparagraph 6 of the Rules Governing Review of Securities Listings occurs, an explanation of reasonableness shall additionally be provided in regard to the serious deterioration in the business operated.
- An issuer applying for listing of stocks as a venture capital company shall additionally describe the risks such as the lack of transparency of the fair value of companies among its investment objects that are not TWSE or TPEx listed, the possibility of material changes in its investment portfolio etc., and the measures to address these risks.
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