| Article 1 |
These Directions are adopted to provide standards for the determination of foreign investment holding companies, to facilitate applications by foreign issuers for trading of their stocks and Taiwan Depositary Receipts on the Taipei Exchange (TPEx).
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| Article 2 |
The term "foreign investment holding company" means a foreign company specialized in investments, with the purpose of controlling, directly, or indirectly through a subsidiary(ies), the operations of at least two holding company subsidiaries. The term "holding company subsidiary" means any of the following:
- An investee company in which more than 50 percent of the issued voting shares are held by the investment holding company directly.
- An investee company in which more than 50 percent of the issued voting shares are held by the investment holding company indirectly through its subsidiary(ies).
- An investee company in which more than 50 percent of the issued voting shares are held by the investment holding company directly, and indirectly through its subsidiary(ies).
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| Article 3 |
The consolidated financial statements of a foreign investment holding company shall have 70 percent or more of the operating profit contributed from holding company subsidiaries in which the holding company holds more than 50 percent of the issued voting shares. In addition, the book values of all of the holding company subsidiaries must aggregate to 50 percent or more of the investment holding company's non-current equity investments, and 50 percent or more of its shareholders' equity. None of the holding company subsidiaries may specialize in investment holding themselves.
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| Article 4 |
These Directions, and any amendments hereto, shall be publicly announced and enter into force after approval by the competent authority.
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