Legislative Yuan has passed the first reading of the regulation that made compulsory for a company beyond a certain threshold to issue the shares.
E031031Y9 Nov. 2003（E48）
The Committees on Economics and Energy of Legislative Yuan have on October 30, 2003 passed the first reading of the Draft on Company Law Amendment, in which a new provision governing compulsory share-issue has been amended, that is, the authority has made it compulsory for a company beyond a certain threshold of capital amounts and number of shareholders to publicly issue the shares. This provision is enacted to prevent some big companies from avoiding the supervision of securities and futures commission, concealing the financial situation, or even exhausting the companies’ holdings.
The threshold, said the officer of the Ministry of Economics, is to be negotiated with the securities and futures commission upon the completion of the Company Law Amendment. But in principle, the new standard shall not far away from the line of “an company with capital amount exceeding NT 0.5 billions, and shareholders totaling 300 or more”.
