2021 年 9 月 1 日

Circumstances permitted by the competent authority for exemption from the prohibition of over-the-counter listed securities transactions under the Securities Exchange Act (Taiwan)

Nora Shih Article 150 of the Securities Exchange Act (the “SEA”) stipulates that the listed securities must be traded in the centralized securities trading market established by the stock exchange. Thus, this regulation prohibits over-the-counter listed securities transactions. However, Article […]
2021 年 9 月 1 日

Financial Supervisory Commission’s interpretation regarding short-swing trading under the Securities and Exchange Act (Taiwan)

Aaron Chen and Tina Lee I. Article 157, Paragraph 1 of the Securities and Exchange Act prohibits short-swing trading, which stipulates that “In the event that any director, supervisor, managerial officer, or shareholder holding more than ten percent of the […]
2021 年 9 月 1 日

Interim Measures for the Administration of Wealth Management Product Sales of Wealth Management Companies (Mainland China)

Karl Zhang On May 11, 2021, the China Banking and Insurance Regulatory Commission (the “CBIRC”) announced the Interim Measures for the Administration of Wealth Management Product Sales of Wealth Management Companies (the “Measures”), which went into effect on June 27, […]
2021 年 8 月 1 日

Three associations jointly issued the Announcement on Preventing Cryptocurrency Speculation Risk, and the crackdown on bitcoin mining and trading practices from the Financial Stability and Development Committee (Mainland China)

Karl Zhang On May 18, 2021, the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China issued the Announcement on Preventing Cryptocurrency Speculation Risk to announce the following: 1. The nature […]
2021 年 7 月 1 日

The scope of “property interest obtained from the commission of a crime” in the offense of illegal absorption of funds shall be the entire funds absorbed from external parties by the actor and the compensation or property interest obtained from the commission of a crime (Taiwan)

Elva Chuang The Supreme Court rendered the 109-Tai-Shang-3917 Decision (hereinafter, the “Decision”), holding that the “property interest obtained from the commission of a crime” within the meaning of Article 125, Paragraph 1 of the Banking Law should be interpreted to […]
2021 年 5 月 17 日

Those whose seals are misappropriated are not liable to the holders as the drawers (Taiwan)

Elva Chuang The Supreme Court rendered the 109-Tai-Jian-Shang-51 Decision of November 26, 2020 (hereinafter, the “Decision”), holding that since the persons whose seals are misappropriated do not sign negotiable instruments, they are not liable as drawers, and those whose seals […]
2021 年 3 月 1 日

The Supreme Court affirms that a false act without substantive transaction also falls within the scope of non-arm’s length transaction (Taiwan)

Elva Chuang The Supreme Court rendered the 108-Tai-Shang-2261 Decision of October 30, 2020 (hereinafter, the “Decision”), holding that the offense of non-arm’s length transaction under Article 171, Paragraph 1, Subparagraph which does not involve a false act without substantive transaction […]
2020 年 12 月 1 日

The third instance trial can no longer arbitrarily challenge the facts determined in the trial of fact based on evidence and logical and empirical rules (Taiwan)

Tiffany Hsiao The Supreme Court rendered the 109-Tai-Shang-2833 Decision of June 24, 2020 (hereinafter, the “Decision”), holding that the facts determined by the trial of fact based on evidence and logical and empirical rules cannot be arbitrarily challenged in the […]
2020 年 12 月 1 日

Interim Measures for the Supervision and Administration of Financial Holding Companies (Mainland China)

Karl Zhang On September 11, 2020, the People’s Bank of China issued the Interim Measures on Supervision and Administration of Financial Holding Companies (the “Measures”), which came into effect on November 1, 2020.  The Measures are highlighted below: I. Scope […]
2020 年 11 月 1 日

The “responsible person of an act” under Article 125, Paragraph 3 of the Banking Law refers to the responsible person involved in decision-making and execution and causing the juristic person to commit a crime through his/her dominant role (Taiwan)

Elva Chuang The Supreme Court rendered the 109-Tai-Shang-2077 Decision of May 21, 2020 (hereinafter, the “Decision”), holding that Article 125 of the Banking Law imposes penalties for illegal acceptance of deposits and the business subjects targeted for the penalties should […]
2020 年 10 月 1 日

When an actor intends to cover up the sources of a specific crime through direct consumption or to have other joint principal offenders hide illegal money flows through the appearance of false transactions, it is difficult to conclude that this is simply a disposal of loot after a crime is committed (Taiwan)

Elva Chuang The Supreme Court rendered the 109-Tai-Shang-1641 Decision of April 16, 2020 (hereinafter, the “Decision”), in which an explanation was provided concerning the application of Article 14, Paragraph of the Money Laundering Control Law, which came into effect on […]
2020 年 10 月 1 日

Provisions of the Supreme People’s Court on Issues Concerning Representative Litigation in Securities Disputes (Mainland China)

Karl Zhang The Provisions of the Supreme People’s Court on Issues Concerning Representative Litigation in Securities Disputes (the “Provisions”) were adopted at the 1808th meeting of the Judicial Committee of the Supreme People’s Court on July 23, 2020, and has […]
2020 年 10 月 1 日

If the holder of a check asserts that it was issued and delivered due to a loan provided to the drawer, while the drawer contends that no loan was received, the holder shall assume the burden of proof for the fact that the loan has been provided (Taiwan)

Oli Wong The Supreme Court rendered the 109-Tai-Shang-Zi-47 Decision of May 6, 2020 (hereinafter, the “Decision”), holding that if the holder of a check asserts that it was issued and delivered due to a loan provided to the drawer, while […]
2020 年 9 月 1 日

Determination criteria for the non-arm’s length transactions that “cause significantly harm to the company” under the Securities and Exchange Law (Taiwan)

Elva Chuang The Supreme Court rendered the 108-Tai-Shang-789 Decision of March 26, 2020 (hereinafter, the “Decision”), holding that when the amount of damage sustained by a company is calculated for the commission of the offense of non-arm’s length transaction under […]
2020 年 8 月 1 日

Provisions on the Administration of the Domestic Securities and Futures Investment Funds of Foreign Institutional Investors (Mainland China)

Karl Zhang On May 7, 2020, the People’s Bank of China and the State Administration of Foreign Exchange promulgated the Provisions on the Administration of the Domestic Securities and Futures Investment Funds of Foreign Institutional Investors (the “Provisions”), which came […]
2020 年 8 月 1 日

Guiding Opinions on the Transfer of Companies Listed on the National Equities and Exchange Quotations for Listing on Other Boards (Mainland China)

Joyce Wen On June 3, 2020, the China Securities Regulatory Commission (the “CSRC”) promulgated its Guiding Opinions on the Transfer of Companies Listed on the National Equities and Exchange Quotations for Listing on Other Boards (the “Guiding Opinions”).  The Guiding […]
2020 年 8 月 1 日

Since the commissions and securities transaction taxes are necessary costs for an investor’s trading of stocks, it is not appropriate to elect to conclude that there is a causal relationship between such costs and an illegal speculative act and to include such costs in the damages incurred by the investor (Taiwan)

Angela Wu The Supreme Court rendered the 108-Tai-Shang-863 Decision of February 27, 2020 (hereinafter, the “Decision”), holding that since the commissions and securities transaction taxes are necessary costs for an investor’s trading of stocks, it is not appropriate to elect […]
2020 年 7 月 1 日

The obvious incomparability with the principal under the Banking Law includes the situation that the agreement obviously exceeds the normal fixed deposit rate quoted by a typical bank (Taiwan)

Elva Chuang According to the facts underlying the 108-Tai-Shang-3339 Decision of March 11, 2020 (hereinafter, the “Decision”) rendered by the Supreme Court, the Defendants obviously were aware that N Online Bank in the United Kingdom (hereinafter, “N”) was not a […]
2020 年 7 月 1 日

The Civil Code, the Company Law, the company’s Articles of Incorporation, and the contract should be considered for the qualifications of a manager who has committed the offense of special breach of trust under Securities and Exchange Law. (Taiwan)

Nora Shih The Supreme Court rendered the 108-Tai-Shang-778 Decision of January 16, 2020 (hereinafter, the “Decision”), since the Securities and Exchange Law does not expressly provide for the qualifications of a manager who has committed the offense of special breach […]
2020 年 6 月 1 日

In case an actor distributes a stock via false information, even if such actor does not sell the stock to a victim personally, the fact of a joint fraud is still constituted (Taiwan)

Nora Shih The Taichung Branch of the Taiwan High Court rendered the 108-Su-Yi-68 Decision of November 29, 2019 (hereinafter, the “Decision”), holding that in case an actor distributes a stock via false information, even if such actor does not sell […]
2020 年 6 月 1 日

The so-called confiscable proceeds of crime under Article 136-1 of the Banking Law refer to unlawful gains such as exchange rate differences, management fees, handling fees or other remuneration actually received by the operator, excluding remittance payments received (Taiwan)

Alex Liao The Supreme Court rendered the 108-Tai-Shang-2465 Decision of August 15, 2019 (hereinafter, the “Decision”), holding that the so-called confiscable proceeds of crime under Article 136-1 of the Banking Law refer to unlawful gains such as exchange rate differences, […]
2020 年 6 月 1 日

Interim Measures for the Administration of Insurance Asset Management Products (Mainland China)

Karl Zhang On March 18, 2020, the China Banking and Insurance Regulatory Commission (the “CBIRC”) promulgated the Interim Measures for the Administration of Insurance Asset Management Products (the “Measures”), which will come into effect on May 1, 2020.  The Measures […]
2020 年 5 月 1 日

Article 29-1 of the Banking Law is not limited to the solicitation of funds from a massive number of unspecified individuals in a format of a pyramid scheme (Taiwan)

Tiffany Hsiao The Supreme Court rendered the 108-Tai-Shang-2403 Decision of January 9, 2020 (hereinafter, the “Decision”), holding that Article 29-1 of the Banking Law is not limited to the solicitation of funds from a massive number of unspecified individuals in […]
2020 年 5 月 1 日

Even though supervisors do not sign financial reports before leaving office, still it is not appropriate to directly conclude that they are not liable for any falsehood of the financial reports (Taiwan)

Sean Tsou The Supreme Court rendered the 108-Tai-Shang-132 Decision of October 23, 2019 (hereinafter, the “Decision”), holding that before supervisors’ substantive review of financial reports or the lack of such review is confirmed, it is not appropriate to conclude directly […]
2020 年 4 月 1 日

An offense of non-arm’s length transaction is preconditioned by material damage to the company as a result of the legal violation, and the amount of damage sustained by the company should be compared with the size of the company to determine the materiality of the damage (Taiwan)

Jhen-Yi Chen The Supreme Court rendered the 107-Tai-Shang-518 Decision of August 15, 2019 (hereinafter, the “Decision”), holding that an offense of non-arm’s length transaction is preconditioned by material damage to the company as a result of the legal violation, and […]
2020 年 3 月 1 日

Whether false information in financial documents meets the “materiality” criteria under the Securities and Exchange Law should be comprehensively determined by qualitative and quantitative indicators (Taiwan)

Fang-Wei Lin The Supreme Court rendered the 108-Tai-Shang-1547 Decision of July 25, 2019 (hereinafter, the “Decision”), holding that whether false information in financial documents meets the “materiality” criteria under the Securities and Exchange Law should be comprehensively determined by “quantitative […]
2019 年 12 月 31 日

Measures for the Administration of Net Capital of Wealth Management Subsidiaries of Commercial Banks (Trial Implementation) (Mainland China)

Joyce Wen The China Banking and Insurance Regulatory Commission promulgated on November 29, 2019 the Measures for the Administration of Net Capital of Wealth Management Subsidiaries of Commercial Banks (Trial Implementation) (the “Measures”), which will go into effect on March […]
2019 年 12 月 31 日

If a company endorse a negotiable instrument with an intent to provide an implied guarantee, even though the holder of the negotiable instrument is obviously aware of this, the company should still be liable based on the literal meaning of the negotiable instrument (Taiwan)

Tiffany Hsiao The Taiwan High Court issued the 108-Zai-9 Decision of May 14, 2019 (hereinafter, the “Decision”), holding that in case a company endorses a negotiable instrument with an intent to provide an implied guarantee, if the holder of the […]
2019 年 12 月 31 日

If a company elects to decide the salaries and compensation of the directors, supervisors and managerial officers without individual assessment by the compensation committee in violation of Article 14-6 of the Securities and Exchange Law, this merely gives rise to the issue of whether the competent authority may impose any administrative sanction upon such company, and it does not force such decision to be invalid (Taiwan)

Elva Chuang The Supreme Court rendered the 108-Tai-Shang-538 Decision of May 23, 2019 (hereinafter, the “Decision”), holding that if a company elects to decide the salaries and compensation of the directors, supervisors and managerial officers without individual assessment by the […]
2019 年 11 月 30 日

Article 125, Paragraph 3 of the Banking Law penalizes the de facto legal representative of a juristic person who has engaged in the actual act and is not limited to the legal representative or managerial officers indicated in the company registration data (Taiwan)

Elva Chuang The Supreme Court rendered the 107-Tai-Shang-3554 Decision of April 11, 2019 (hereinafter, the “Decision”).  According to the facts underlying this Decision, the Appellant (or the Defendant) was the chairman and de facto legal representative of the company that […]