Important Measures
FSC amends the “Securities Investor and Futures Trader Protection Act”
2020-07-14
To improve the regulatory framework for derivative suits and discharge suits, to promote corporate governance, to improve mediation procedure, and expand the protection institution’s scale of operations, amended version of the aforementioned Act was passed by the Legislative Yuan on 22 May 2020 and promulgated by the president on 10 June 2020. Key points of the amendments include the following: (1) the protection institution may request the company to institute an action against a past director or supervisor; (2) the protection institution may, with respect to the same underlying transaction or occurrence, join a suit as a co-party or file additional claims against those who should duly be held liable for compensation for that transaction or occurrence and who furthermore manage the operation of the company and are authorized to sign relevant business documents for the company; (3) the causes for which a discharge suit may be brought against a director or supervisor will no longer be limited to causes that occurred during the term the director or supervisor is serving at the time of filing of the suit; and (4) a director or supervisor who is discharged from office by a decision of a court shall not be appointed as a director or supervisor of a TWSE listed, TPEx listed or Emerging Stock company.
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- Update： 2020-07-14
