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Title Taipei Exchange Rules Governing the Review of Emerging Stocks for Trading on the TPEx CH
Date 2012.10.22 ( Amended )

Article Content

Article 1
Article 2
Article 3
Article 4
Article 5
Article 6 A domestic issuer meeting the following requirements may apply to register its stock for GTSM trading: 1. It is a public company. 2. It has signed an advisory contracts with securities firms. 3. It has received written recommendations by two or more advising/recommending securities firms, and one of them has been designated as the lead advising/recommending securities firm, and the other(s) as co-advising/recommending securities firm(s), and the lead advising/recommending securities firm has submitted the "Financial or Operational Material Event"Checklist"for the company for the most recent one month (hereinbelow, the "Checklist"(Appendix 1). 4. It has established a professional shareholder services agent or shareholder services unit at the location of the GTSM to handle shareholder services. 5. All stocks and bonds that it offers and issues shall without exception be issued in scripless form. 6. It is required to establish a remuneration committee under Article 14-6 of the Securities and Exchange Act and related provisions. The professional shareholder services agent or shareholder services unit referred to in subparagraph 4 of the preceding paragraph shall produce supporting documents though the Taiwan Depository & Clearing Corporation (TDCC) in evidence of the following: 1. that its personnel and facilities in connection with shareholder services all comply with the Regulations Governing Handling of Shareholder Services by Public Companies; and 2. That it has not within the past 3 fiscal years, following an audit by the TDCC, been given written notice of recommendations for improvements and failed to make improvements within the deadline. Securities, futures, financial, or insurance enterprises applying for the trading of their stock as an Emerging Stock shall first obtain an approval letter from the competent authority of the target industry before the GTSM accepts their applications. Each month the lead advising/recommending securities firms shall obtain materials related to the items listed on the Checklist referred to in subparagraph 3 of paragraph 1 and carry out the monthly audit procedures, truthfully and completely fill in the results of the audit, and compile them into bound volumes together with the relevant working papers.
Article 7 A foreign issuer meeting the following conditions may apply for registration of its common stock for GTSM trading: 1. It is a company limited by shares organized and registered under foreign law, and does and has not violated any applicable provision of the Act Governing Relations Between the Peoples of the Taiwan Area and the Mainland Area, and has filed for retroactive public issuance of the stock pursuant to the provisions of the Regulations Governing the Offering and Issuance of Securities by Foreign Issuers. However, if individuals, juristic persons, groups, or other institutions from the Mainland Area have direct or indirect shareholding or capital contribution exceeding 30 percent in, or effective control over, the foreign issuer, special-case permission shall be obtained from the competent authority. 2. Its issued registered stock is not listed for trading on any overseas securities market. 3. It has signed an advisory contract with securities firms. 4. It has received written recommendations by two or more advising/recommending securities firms, and one of them has been designated as the lead advising/recommending securities firm, and the other(s) as co-advising/recommending securities firm(s), and the lead advising/recommending securities firm has submitted the checklist for the company for the most recent one month (Appendix 1). 5. Has established a professional shareholder services agent in the area where the GTSM is located to handle shareholder services. 6. Has appointed at least one litigious and non-litigious agent who has a domicile or residence within Taiwan. 7. The foreign issuer shall undertake that it will comply in the following matters: A. Comply with the ROC Securities and Exchange Act and related laws, regulations, and policies. If the foreign issuer is organized as an investment holding company, its holding company subsidiary also must undertake that it will comply therewith. B. Upon request by the GTSM, appoint a designated CPA or professional institution to conduct a targeted examination within the audit scope designated by the GTSM, and to submit the examination results to the GTSM, and agrees to bear any related expenses. C. GTSM listed shares shall be delivered by book-entry transfer. D. Important matters in connection with protection of shareholder equity, which shall be specified in the company's articles of incorporation or organizational documents. 8. The stocks and bonds offered and issued shall be issued in dematerialized form; provided, this restriction shall not apply if the laws or regulations of the country of its registration provide otherwise. 9. The laws of the Republic of China shall be the applicable law for the Contract for GTSM Trading of Emerging Stock entered into by the foreign issuer. The Taiwan Taipei District Court shall be the competent court for litigation in the event of any dispute arising in connection with the Contract. 10. It is required to establish a remuneration committee under the mutatis mutandis application of Article 14-6 of the Securities and Exchange Act and related provisions. The professional shareholder services institution referred to in subparagraph 5 of the preceding paragraph shall have documents evidencing the following issued by the TDCC: 1. Its personnel and equipment for handling shareholder services all are in compliance with the Regulations Governing the Administration of Shareholder Services of Public Companies. 2. There has been no instance in the preceding 3 years in which, after a TDCC audit, the TDCC has made written suggestions for improvement, and it has failed to make improvements by the deadline. Each month the lead advising/recommending securities firms shall obtain materials related to the items listed on the Checklist referred to in subparagraph 4 of paragraph 1 and carry out the monthly audit procedures, truthfully and completely fill in the results of the audit, and compile them into bound volumes together with the relevant working papers.
Article 8
Article 9
Article 10
Article 11
Article 12
Article 13
Article 14
Article 15
Article 16
Article 16-1
Article 17
Article 18
Article 19
Article 20
Article 21
Article 22
Article 23
Article 24
Article 25
Article 26 An Emerging Stock issuer shall handle its shareholder services in accordance with Article 6, paragraph 1, subparagraph 4, and paragraph 2, subparagraphs 1 and 2; or Article 7, paragraph 1, subparagraph 5, and paragraph 2, subparagraphs 1 and 2, of these Rules, and shall notify the GTSM of the place of business and name of the responsible person of its professional shareholder services agent or shareholders services unit; the same shall apply upon any change thereto. An issuer shall handle its shareholders services in accordance with the Regulations Governing Handling of Shareholder Services by Public Companies promulgated by the competent authority However, this restriction shall not apply when the laws or regulations of the country in which a foreign issuer is registered provide otherwise. In the case of stock that has no par value or a par value per share other than NT$10, Article 14 of those Regulations need not be applied An applicant filing (or applying) for GTSM trading of shares issued for a capital increase or shares reissued after a capital reduction shall obtain documentation evidencing registration of scripless share issuance.
Article 27
Article 28
Article 29
Article 30
Article 31
Article 32
Article 33
Article 33-1
Article 34
Article 35
Article 36
Article 37
Article 38 Under any of the following circumstances, the GTSM may suspend the trading of an issuer's stock on the GTSM: 1. There is no lead advising/recommending securities firm. 2. Only one advising/recommending securities firm remains. 3. The issuer fails to publicly announce and report its annual or semi-annual financial report within the period prescribed by Article 36 of the Securities and Exchange Act. 4. The issuer fails to publish material information in accordance with relevant regulations and fails to correct the situation within a certain time period as ordered. 5. The issuer fails to handle its shareholder services in accordance with Article 6, paragraph 1, subparagraph 4, or paragraph 2, subparagraphs 1 or 2, or Article 7, paragraph 1, subparagraph 5, or paragraph 2, subparagraphs 1 and 2 of these Rules and fails to correct the situation within a certain time period as ordered by the GTSM. 6. Any of the circumstances under Article 282 of the Company Act exist at the issuer, and the transfer of its shares is prohibited by a court ruling pursuant to Article 287, paragraph 1, subparagraph 5 of the Company Act. 7. A foreign issuer no longer has a litigious and non-litigious agent who has a domicile or residence in Taiwan. 8. The issuer breaches any undertaking it has made. 9. A consolidated financial report publicly announced and filed by a foreign issuer does not meet the requirements set out in Article 31, paragraph 3 of these Rules. 10. The issuer evades or refuses a targeted audit conducted by the GTSM or a CPA or professional institution designated by the GTSM, and the circumstances arematerial. 11. Any other event that the GTSM deems to necessitates the suspension of trading of the stock on the GTSM. For stocks for which GTSM trading is to be suspended under the preceding paragraph, except where GTSM trading is suspended pursuant to subparagraph 6 of that paragraph, the GTSM shall promptly make a public announcement that the GTSM trading of the issuer's stock will be suspended starting from the fifth business day following the announcement date. If GTSM trading of a stock is suspended pursuant to paragraph 1, subparagraph 6, the GTSM shall make a public announcement on the date it becomes aware of such circumstance or the date on which it receives notification from the court, or the emerging stock company shall make a public announcement on the date of disclosure of the material information (whichever date comes first), and trading will be suspended starting from the business day next following the public announcement date.
Article 39
Article 40
Article 41
Article 42
Article 43
Article 44
Article 45
Article 46
Article 47
Article 48
Article 49
Article 50
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