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TWSE requires listed companies applied in phases to disclose material information on annual unaudited financial information

Publish time:2021-08-03

To improve the timeliness of financial information disclosure, TWSE requires listed companies applied in phases based on the different amount of capital to disclose material information on annual unaudited financial information resolved by the board of directors.

Taiwan Stock Exchange (TWSE) stated that, starting from next year (2022), listed companies with a paid-in capital of NT$10 billion or more shall announce material information 75 days after the end of each fiscal year, describing self-assessed figures and relevant data from the previous year approved by the board of directors, in order to comply with goals in the Corporate Governance 3.0 - Sustainable Development Roadmap by the Financial Supervisory Commission. The aforementioned regulations will come into effect in phases based on the different amount of capital of each listed company. The year after the next (2023), the regulations will apply to listed companies with a paid-in capital of NT$2 billion and more, and in 2024, to all listed companies. This will help investors understand each listed company's operating performance earlier on.


According to TWSE, material information that would affect investors is defined as substantial uncertainty about the ability to continue as a going concern by the attesting CPA upon audit or review of the financial report publicly announced of a listed company. In such case, the listed company shall announce and explain the material information. In addition, partial amendment of the Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities has been announced in order to prevent discrepancy between the main content of material information described by the listed company to the media and that of material information announced by the company, which could mislead investors; or to avoid exaggeration, publicity, false hope, or any other data inconsistent with reality, which could potentially affect the rights and interests of
investors.


TWSE encourages listed companies to increase transparency. Listed companies are required to hold or be invited to one or more institutional investor conference every year in order to allow investors to follow their business performance. Furthermore,the current amendment will revise the procedures above and improve the timeliness of financial information disclosure.