Taiwan’s Congress Approves the Draft Amendment to Taiwan Securities Legislation that Proposes to Lower the Shareholding Disclosure Threshold for Shareholders of Taiwan’s Public Companies from 10% to 5%
Taiwan’s Legislative Yuan (“Congressâ€) approved an amendment to Taiwan’s main securities legislation, the Securities and Exchange Act (the “Amendmentâ€), which, among other things, expands the application of the shareholding disclosure requirement for shareholders of Taiwan’s public companies by lowering the applicable shareholding threshold triggering such disclosure requirement on 21 April, 2023.
Under the original Article 43-1 of Taiwan’s Securities and Exchange Act, any person who acquires, either individually or jointly with others, more than 10% of the total issued shares of a Taiwan public company is subject to a disclosure requirement via a filing with the TFSC. The information required for said disclosure filing includes the number of issued shares acquired by the shareholder, the purpose of such share acquisition, and the financial sources for the acquisition. The Amendment now lowers the shareholding disclosure threshold for shareholders of Taiwan’s public companies from 10% to 5% in order to increase transparency on shareholding structure for public companies in Taiwan.
The Amendment will now need to be officially signed off on by the President within ten days after approval from Congress to become effective. The Amendment, however, provides a transition period of one year for the new threshold becoming effective after it has been approved by Congress and officially signed off on by the President.
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English translations of Taiwan M&A and Capital Market Updates are available from YANGMING PARTNERS’ Legal Support Department.
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