萬國法律事務所

Taiwan’s Legislative Yuan passed amendments to the Securities Exchange Act on 4 May 2010. The main points of the amendment are described as below:

Clearly define the insider trading

Upon actually learning of any information that will have a material impact on the price of securities of an issuing company and after such information is confirmed, prior to the public disclosure of such information or within a period of 18 hours after its public disclosure, a director, supervisor, managerial officer of the company and/or shareholders holding more than ten percent of the shares of the company shall not purchase or sell shares of the company that are listed on an exchange or an over-the-counter market, or any other equity-type security of the company.

Shorten the period of announcement of annual financial statements

In order to enhance the transparency of corporate information, the period of announcement of annual financial statements is shortened to within 3 months after the fiscal year ends.

Listed or over-the-counter companies shall convene annual shareholders meeting within 6 months after the fiscal year ends

This amendment is aimed at preventing listed or over-the-counter companies from scheduling their annual shareholders meetings on the same date and to protect the rights of minor shareholders.