Taiwan Stock Exchange to ease regulations over foreign companies seeking primary listing in Taiwan

On August 27, Taiwan Stock Exchange (“TSE”) held its board of directors meeting and decided to allow reasonable room for a foreign company seeking primary listing with it to seek immunity from current regulations if the application results in hardship with the laws of the country of incorporation (“Home Country”). The easing of the current regulations is taken to encourage more foreign companies to seek primary listing with the TSE.  In the past many foreign companies seeking primary listing in Taiwan sought to establish a holding company in an offshore jurisdiction in order to be compliant with Taiwanese securities regulations. Notably, the differences in the rights and interests of a stockholder under Taiwan laws and those of the Home Country must be clearly set out in the offering prospectus. Among other things, the applicant company must also engage legal counsel on two the two sides to issue necessary opinions to certify the differences between Taiwan laws and those of the Home Country.