Foreign issuer rules to be relaxed
By Ted Chen, The China PostTAIPEI, Taiwan -- To expedite and promote the stock listings of foreign companies on local exchanges, the Taiwan Stock Exchange (TWSE, 證交所) yesterday announced that it will render concessions and relax the enforcement of regulatory measures.
August 28, 2013, 12:02 am TWN
The move is designed to allay concerns over instances where Taiwan's securities regulations may contradict with those imposed by a foreign company's country of origin, as regulators in Taiwan plan to relax enforcement of specific stipulations to facilitate the listing of foreign companies' shares on local exchanges.
The TWSE cited the example of Japanese firms, with which the exchange is attempting to attract listing. According to the TWSE's findings, Japanese securities laws differs markedly from regulations set in Taiwan, in particular to stipulations concerning Corporate Law, and stock affairs and investors' relations management; as such, imposing Taiwanese regulations would impose a precarious situation upon Japanese companies wishing to have their stocks listed on the TWSE. A notable difference between securities regulations in Japan and Taiwan is that the withdrawals of consented terms formed in a company's shareholders' meeting requires court approval in Japan.
However, the TWSE emphasized that the change is applicable in instances where investors' interests are not harmed, and that it will require foreign companies to produce contingency clauses and procedures in place of relaxed regulations to preserve fairness.
The TWSE hopes to promote listings of foreign companies, including enterprises from China and Singapore, in an effort to develop and expand the local market.