Contents

1. Laws
2. Accounting & Auditing Standards
3. Regulations
4. Listing Rules
5. Official Codes & Guidelines
6. Other Codes & Guidelines

1. Laws

Company Act
The Company Act was enacted on December 26, 1929 and is administered by the Ministry of Economic Affairs. There have been three amendments to the law: in November 2001, June 2005 and February 2006.

Securities and Exchange Act
The Securities and Exchange Act was enacted on April 30, 1968 and is administered by the Financial Supervisory Commission. It has since undergone a number of amendments, most recently in May 2006.

New Item:
On May 30, 2006, a new regulation went into effect that clarifies the meaning of "material information" in relation to insider trading under Article 157-1 of the Securities and Exchange Act. (See "Regulations" below for more).

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2. Accounting & Auditing Standards

Accounting Research and Development Foundation
Founded in 1984, the Foundation is responsible for issuing accounting and auditing standards in Taiwan. Its website provides summaries and full translations of the country's "Statements of Financial Accounting Standards" and summaries of its "Statements of Auditing Standards".

IAS Plus: www.iasplus.com
IAS Plus, a website run by Deloitte, provides the latest updates on accounting standards in Taiwan.

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3. Regulations

Expanded Insider Trading Rules (May 2006)
The Financial Supervisory Commission published new and more detailed regulations governing insider trading on May 30, 2006: "Regulations Governing the Scope of Material Information and the Means of its Public Disclosure Under Article 157-1, Paragraph 4, of the Securities and Exchange Act". As its title suggests, the new regulation clarified the meaning of "material information" under the Securities and Exchange Act and the way that issuers should disclose such information to shareholders and the public.

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4. Listing Rules

Taiwan Stock Exchange Corporation Regulations Governing Review of Securities Listings
Taiwan's listing rules date from March 1990 and have been amended several times since, the latest being in July 2008.

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5. Official Codes and Guidelines

TSEC/GTSM Best-Practice Principles, 2002
In October 2002, the Taiwan Stock Exchange Corporation (TSEC), the main board, and the GreTai Securities Market (GTSM), the second board, released the country's first set of corporate governance best-practice principles for listed companies. The Principles state that a listed company should encourage its shareholders to actively participate in corporate governance. Drawing on both global standards and Taiwanese company law, the document outlines a non-mandatory system of independent directors, board committees (starting with audit) and independent supervisors. It also touches upon stakeholder rights.

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5. Other Codes and Guidelines

Principles for Corporate Governance of Banks, March 26, 2009
On March 26, 2009, the Republic Of China Bankers Association issued these Principles, which were formally recognised by the Financial Supervisory Commission on October 5, 2009.

The Association stated that it was adopting these Principles in order to create a "sound corporate governance system for banks, and to promote development of the integrity of banks". Banks have to comply with these Principles when establishing a corporate governance system.

The Principles give guidelines on seven issues:

1. Establishing an effective corporate governance system;
2. Complying with relevant laws and regulations and enhancing internal management;
3. Protecting shareholders' rights and interests;
4. Strengthening the powers of the board of directors;
5. Fulfilling the functions of the supervisors;
6. Respecting the rights and interests of stakeholders; and
7. Enhancing information transparency.

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