Taiwan Stock Exchange - Rules & Regulations Directory

Article NO. Content

Title:

Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises 

Amended Date: 2000.10.17 
Article 6
    When determining whether a relationship of subordination or control with an affiliate exists, a public company shall consider substantive as well as legal relationships.
    In any of the following circumstances, a public company shall prepare a consolidated business report and consolidated financial statements of the affiliates; however, this requirement shall not apply where there are relevant materials and evidence proving that no relationship of control or subordination exists.
  1. The company obtains a majority of directorships of another company;
  2. Its appointee is engaged as general manager of another company;
  3. It wields operational power over another company pursuant to a joint venture contract;
  4. Its financing of another company amounts to one-third or more of that company's total assets;
  5. Its endorsements and guarantees on behalf of another company amount to one-third or more of that company's total assets.
    A public company determined to have a relationship of subordination under any subparagraph of the preceding paragraph shall prepare an affiliation report; however, this requirement shall not apply where there are relevant materials and evidence proving that no relationship of control or subordination exists.    A public company determining, as proven by relevant materials or evidence pursuant to the preceding two paragraphs, that no relationship of control or subordination exists [with a certain company] shall disclose the name of such company and the reasons for such determination in its consolidated business report of affiliates or its affiliation report.

Interpretation:

Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw