2015-06-22
New amendment to suspension of stock trading for food scandal suspects
On 15 June 2015, Taiwan’s Legislative Yuan passed an amendment to the “Securities and Exchange Act.” The amendment allows the securities authority to order the suspension of the stock trading if the company involves in food or serious nuisance scandals.
Under the current Securities and Exchange Act, a listed company could face trading suspension only if it becomes involved in serious litigation or other non-litigious matters, major disasters, or engages in deceptive, dishonest, or illegal practices. However, according to the new amendment, the competent authority will be allowed to order the suspension of the stock trading if the company involves in food scandals or environmental hazards.
The amendment is in response to the recent series food scandal of Ting Hsin International Group and environmental hazard of Advanced Semiconductor Engineering Inc. (ASE). Both events caused heavy losses for investors, prompting calls for the government to tighten monitoring of the stock trading.
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