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Chapter Law Content

Title: Securities and Exchange Act CH
Category: Financial Supervisory Commission(金融監督管理委員會)
Chapter V Stock Exchange
Section 6 Supervision
Article 161
(Protective Measures)
In order to protect the public interest and the interest of investors, the Competent Authority may order a stock exchange to amend its articles of association/incorporation, business rules, bylaws, rules regarding brokerage contracts, and any other rules; the Competent Authority may also suspend, enjoin, amend, or void the resolutions or dispositions issued by the stock exchange.
Article 162
(Protective Measures)
The provisions of Article 64 shall apply mutatis mutandis to the inspection of the stock exchange and orders to furnish information issued by the Competent Authority.
Article 163
(Sanctions for Legal Violations by Securities Exchanges)
Where a stock exchange takes any action in violation of an act or regulation or an administrative disposition issued pursuant to an act or regulation, or takes any other action detrimental to the public interest or disturbs the social order, the Competent Authority may impose any of the following dispositions:
1. the dissolution of the stock exchange.
2. the suspension or the termination of the complete or partial business of a stock exchange; provided, however, that such suspension does not exceed three months.
3. the issuance of orders to the stock exchange to discharge its directors, supervisors, or managerial officers.
4. the issuance of corrective orders.
In the event that the Competent Authority is to impose any dispositions specified in subparagraphs 1 or 2, advance approval of such disposition from the Executive Yuan shall be required.
Article 164
(Supervisory Personnel)
The Competent Authority may station supervisory personnel at each of the stock exchanges; regulations governing such supervision shall be prescribed by the Competent Authority.
Article 165
(Compliance with Directions of Supervisory Personnel)
The stock exchange, its members, and securities brokers and dealers which have contracted for the usage of the centralized securities exchange market of the stock exchange shall comply with the directions given by the supervisory personnel pursuant to acts or regulations.