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[Reporter Zhong Lihua/Taipei Report] The Executive Yuan will pass amendments to Article 43-1, Article 178-1, and Article 183 of the "Securities Exchange Law" today, reducing the threshold for large shareholding declarations and announcements from the current 10%. To 5%, so that people who hide in the listed cabinet have nothing to hide.

In addition, for securities-related businesses with poor internal control or financial and business negligence, the maximum fine will also be raised from 4.8 million yuan to 6 million yuan.

The Executive Yuan will pass the draft amendments to Article 43-1, Article 178-1, and Article 183 of the "Securities Exchange Law", reducing the threshold for reporting and announcement of large shareholdings from the current 10% to 5%, allowing listed companies to The mirror man has nothing to hide.

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In order to make the company’s major changes in equity information available immediately and fully, the draft lowers the threshold for declaration and announcement of large shareholdings from the current 10% to 5%, and provides a one-year buffer period.

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The Financial Regulatory Commission stated that considering that most countries such as the United States and Japan set a 5% shareholding as the threshold for large-scale shareholding declarations, and since the first quarter of 2020, the financial reports of listed counter companies have required the disclosure of shareholder information with a shareholding ratio of more than 5%. In order to improve the disclosure system for a large number of equity interests, the threshold for reporting shareholdings has been revised. It is expected that there will be positive benefits to the corporate governance of listed companies, helping companies understand changes in shareholders, and information can be more transparent for investors.

According to statistics from the Securities and Futures Bureau, in 2021, the number of declarations for more than 10% shareholding will be 557. If it drops to 5% in the future, the number of announcements will increase.

In terms of the number of shareholders, by the end of 2020, there will be 1,390 listed or emerging companies, with a total of 3,266 shareholders holding more than 5% but less than 10%.

In addition, in order to strengthen the legal compliance of securities firms, securities service enterprises and securities-related institutions, and make the sanctions have a dissuasive effect, the draft increases the upper limit of fines. Regarding financial, business or management regulations, which may cause heavy losses to customers or affect market order and fairness, etc., the upper limit of relevant fines will be raised from 4.8 million yuan to 6 million yuan.

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