To enhance corporate governance, facilitate companies and investors to understand the major shareholders structure of a corporate, increase the transparency of corporate shareholdings and financial statements, the Financial Supervisory Commission proposed to amend certain articles and exhibits of the Regulations Governing the Preparation of Financial Reports by Securities Issuers. The period of preliminary announcement has expired. The new Regulations will be promulgated and reinstated shortly. The main amendments are as follows: 

A.Added the schedule of information of main shareholders: TWSE-listed or TPEx-listed companies should use this new form to disclose the name, number of shares and shareholding percentage of any shareholder with more than 5% shareholdings in their quarterly financial reports. TWSE-listed or TPEx-listed companies may request the securities central depository enterprise to provide relevant information to comply with the foregoing requirements. 

B.Effective Date: The current amendment shall be applicable to the financial statements as of the first quarter of 2020. 

Furthermore, Taiwan Depository and Clearing Corp. (hereinafter referred to as “TDCC”) has published the procedures for applying for information of shareholders with more than 5% shareholdings on March 10, 2020. According to TDCC’s procedures, each TWSE-listed or TPEx-listed company only needs to submit a one-time request to TDCC, and will receive the information from TDCC for every subsequent quarter. As for the charge, TDCC initially planned to provide a 70% discount on original price. After TDCC discussed with Taiwan Stock Affairs Association, they had reached a consensus on the charge which is 80% off on the original price. After applying such discount, each company will pay a quarterly fee between NT$500 and NT$4,000. 

 

Accounting and Auditing Supervision Division, Securities and Futures Bureau 

Contact Tel. (02)2774-7343 Yi-Ju Chung, Section Chief

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