Biotech and Pharmaceutical Companies may grant stock options to their top executives and technology investors referred to in the preceding article, provided that the proposal on the issuance of such stock options has been approved (i) by a majority vote at a board meeting attended by at least two-thirds (2/3) of all the directors; and (ii) by the Competent Authority.
Holders of the stock options as described in the preceding paragraph may subscribe for a specific number of shares at the stipulated price. The amount of the stipulated price shall not be subject to the minimum requirement, i.e., par value of the share, as prescribed under Article 140 of the Company Act.
Article 267 of the Company Act shall not apply in the event that a Biotech and Pharmaceutical Company issues new shares pursuant to Paragraph 1 of the preceding article.
The top executives and technology investors shall not sell or gift the stock options received pursuant to Paragraph 1 of this article; the same applies to those who inherited such stock options.
Paragraphs 1 to 3, 5 to 7 and 8 of the preceding article apply to the income tax payable on the shares acquired by the top executives or technology investors via the exercise of their stock options, as well as the Biotech and Pharmaceutical Company's application for certification and recordation with the Competent Authority. The procedure for declaring deferral of the income tax payable on the shares acquired by those who exercise their stock options, the documents required to be submitted, and other relevant matters shall be prescribed by the Ministry of Finance.
The requirements for applying with the Competent Authority for the issuance of stock options pursuant to Paragraph 1 hereof, the documents required to be submitted, and other relevant matters shall be prescribed by the Competent Authority.