TAIWAN: TWSE Amends Rules Governing Review of Securities Listings

Friday July 30 2021

On 29^th July 2021, Taiwan Stock Exchange (TWSE) amended Article 18, 19, 28-5, 28-6, 32 and 33 of Rules Governing Review of Securities Listings and Article 8, 8-1, 25 and 32 of Supplementary Provisions to the Taiwan Stock Exchange Corporation Rules for Review of Securities Listings.

In principle, when an issuing company of a group enterprise applies for the listing of its stock, its purchase amount, from other companies within the same group enterprise, its parent company, and its related parties, shall not exceed 70% of total purchase amount of the applying company. However, the restriction would not apply when the reasonable causes exist.

On the other hand, the operating revenues, operating incomes derived from other companies within the same group enterprise, its parent company and its related parties shall not exceed 50% of total operating revenues/ incomes amount of the applying company. The revenue of the applying company significantly generated from the techniques and assets offered by entities mentioned above should meet the 50% criteria as well. However, the percentage restriction rises to 70% when there are reasonable causes.

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