Taiwan – FSC to Lower Substantial Shareholding Disclosure Threshold

Taiwan – FSC to Lower Substantial Shareholding Disclosure Threshold

On 1 August 2023, TAI FSC proposed revisions to lower substantial shareholding disclosure threshold.

  • TAI FSC proposed to amend Regulations governing the declaration on acquisition of shares in accordance with paragraph 1 of article 43-1 of the Securities and exchange act, to comply with the revised Securities and exchange act articles 43-1 and 183.
  • Follows TAI Justice May 2023 amended Securities and exchange act.

Amendments

  • Aims to lower the reporting threshold for substantial shareholdings from 10% to 5%.
  • Shareholders will be able to submit their reports through file uploads on the market observation post system (MOPS), to effectively complete the reporting process.
  • Government-managed retirement, insurance funds will be subject to special regime, with semi-annual reporting deadlines within 10 days for initial/subsequent changes.
  • Shareholders with 5% to 10% shares of publicly traded company's total issued shares before implementation date must report within 10 days after the new rules take effect.

Effectiveness

  • The new regulations will be effective on 10 May 2024 once approved, consultation will be open for 60 days from the date of the official announcement in the gazette.

Comments are closed.