Chapter  I General Provisions

Article 1
These Rules are promulgated pursuant to Article 8 of the Regulations Governing Securities Trading on the Taipei Exchange.

Article 2
The competent authority referred to in these Rules is the Financial Supervisory Commission.

Article 3
When applying to register its issued common stock as a stock traded at the business places of securities firms (hereinafter, “Emerging Stock”), an issuer shall file an application with the Taipei Exchange (TPEx) in accordance with these Rules.

Article 4
The following terms used in these Rules are defined as follows:
1. “Advisory contract” means a contract signed between the issuer and securities firms authorizing the securities firms to plan matters related to the issuer’s application for TPEx listing (or TWSE listing).
2. “Advisory recommending securities firm” means a recommending securities firm that has signed an advisory contract with the issuer.
3. “Investment holding company” means an issuer that is a professional investment company the purpose of which is to control the operations of a holding company subsidiary or subsidiaries either directly, or indirectly through a subsidiary.
4. “Holding company subsidiary” means any of the following invested companies:
A. Any invested company in which an investment holding company directly holds more than 50 percent of the issued voting shares or more than 50 percent of the contributed capital;
B. Any invested company in which an investment holding company indirectly through its subsidiary(ies) holds more than 50 percent of the issued voting shares or more than 50 percent of the contributed capital;
C. Any invested company in which an investment holding company directly, and indirectly through its subsidiary(ies), holds more than 50 percent of the issued voting shares or more than 50 percent of the contributed capital.
5. “Financial reports” means consolidated financial reports, or if the issuer does not have a subsidiary, means individual financial reports.

Article 5
Application (or filing) for the trading of Emerging Stocks on the TPEx, suspension and termination of TPEx trading of Emerging Stocks, and the obligations the issuer shall abide by during the period its Emerging Stock is traded on the TPEx shall uniformly be governed by these Rules, unless otherwise provided in relevant laws and regulations of the competent authority, or unless otherwise subject to restriction under the laws and regulations of the country where the foreign issuer is registered (including, in the case of an investment holding company, the country where its holding company subsidiary is registered).