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Letter to Taiwan SFB on Proposed Draft Amendments to Regulations Governing the Acquisition and Disposal of Assets by Public Companies

On 7 January 2022, ACGA sent a letter to Taiwan's Securities and Futures Bureau in response to the Proposed Draft Amendments to Regulations Governing the Acquisition and Disposal of Assets by Public Companies.

We welcome the proposed amendments as a first step towards enhancing the RPT regime and we especially appreciate the addition of a shareholder approval requirement for certain types of transactions. However, we feel the proposals do not address the fragmented nature of the system and many concerns remain. We offer suggestions including:

• Expanding the types of transactions subject to shareholder approval
• Clarifying the definitions of “related party”
• Doing away with exemptions for intra-group transactions
• Strengthening disclosure requirements