The Financial Supervisory Commission of the Executive Yuan has announced new Rules on the Establishment of a Remuneration Committee by a Company whose Stocks are Listed on the Stock Exchange or Traded Over-the-Counter and a Remuneration Committee's Functions and Duties. According to the new rules, a listed company must establish a remuneration committee which will conduct regular reviews to determine the remuneration of its directors, supervisors and managers.
The Taiwan Securities Association (TSA) has promulgated a new regulation under Paragraph 4, Article 24 of the Regulations Governing Underwriting or Re-Sale of Securities by Underwriters, which requires a lead underwriter to provide the TSA with an evaluation report detailing any irregularities in the stock prices of the underlying shares of Taiwan depositary receipts.
Recently, the market price of certain Taiwan depositary receipts (TDRs) dropped and stayed below their listing prices for an extended period. In response to an appeal from the TDR issuers, the Taiwan Stock Exchange Corporation promulgated the Taiwan Stock Exchange Corporation Rules Governing the Secondary Listed Company's Repurchase of TDRs. The new rules permit TDR issuers to repurchase their outstanding TDRs.
The Executive Yuan has passed amendments to the Securities and Exchange Act. This update highlights the most significant of these amendments, including the introduction of a new chapter on foreign companies, amendments regarding elements of intent and a new insider trading exemption.