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Translations of Taiwan securities laws and regulations updated

Taiwan’s official portal for securities-related laws and regulations was recently updated with changes to nine of its English translations by Winkler Partners.

The Winkler Partners Translation Department has produced the English translations of securities laws and regulations for the portal since 2002. The portal is updated twice a month with new and revised content.

Currently, the site contains 1,453 securities laws and regulations, 587 of which have been translated into English. The site also contains 6,562 administrative letters of interpretation and 1,851 court judgments.

  1. Taiwan Stock Exchange Corporation Procedures for Press Conferences Concerning Material Information of Listed Companies
  2. Taiwan Stock Exchange Corporation Standards for Determining Whether a TWSE Listed Company Shall Publish Complete Financial Forecasts
  3. Corporate Governance Best-Practice Principles for TWSE/GTSM Listed Companies
  4. Taiwan Stock Exchange Corporation Principles for Handling Information Disclosure on the Key Financials Section of the Market Observation Post System (MOPS)
  5. Taiwan Stock Exchange Corporation Procedures for Applications by TWSE Listed Companies for the Delisting of Securities
  6. Standards for Determining Unsuitability for GTSM Listing under Article 10, Paragraph 1 of the GreTai Securities Market Rules Governing the Review of Securities for Trading on the GTSM
  7. Taiwan Futures Exchange Corporation Trading Rules for Taiwan Stock Exchange Capitalization Weighted Stock Index Options Contracts
  8. Taiwan Futures Exchange Corporation Trading Rules for Mini-TAIEX Futures Contracts
  9. Taiwan Futures Exchange Corporation Trading Rules for Taiwan Stock Exchange Banking and Insurance Sector Index Futures Contracts
  10. Taiwan Futures Exchange Corporation Trading Rules for Stock Option Contracts
  11. Taiwan Futures Exchange Corporation Trading Rules for Taiwan Stock Exchange Stock Index (TAIEX) Futures Contracts
  12. Taiwan Futures Exchange Corporation Trading Rules for Taiwan Stock Exchange Electronic Sector Index Futures Contracts
  13. Taiwan Futures Exchange Corporation Trading Rules for FTSE/TWSE Taiwan 50 Index Futures Contracts
  14. Taiwan Futures Exchange Corporation Trading Rules for Taiwan Stock Exchange Finance Sector Index Option Contracts
  15. Taiwan Futures Exchange Corporation Trading Rules for Taiwan Stock Exchange Electronics Sector Index Option Contracts
  16. Taiwan Futures Exchange Corporation Trading Rules for GreTai Securities Market Stock Index Futures Contract
  17. Taiwan Futures Exchange Corporation Trading Rules for GreTai Securities Market Stock Index Options Contract
  18. Taiwan Futures Exchange Corporation Trading Rules for Taiwan Stock Exchange NonFinance NonElectronics Sub-Index Futures Contracts
  19. Taiwan Futures Exchange Corporation Trading Rules for Taiwan Stock Exchange NonFinance NonElectronics Sub-Index Options Contracts
  20. Taiwan Futures Exchange Corporation Trading Rules for Single Stock Futures Contracts
  21. Taiwan Futures Exchange Corporation Trading Rules for the Gold Options Contract
  22. Taiwan Futures Exchange Corporation Trading Rules for NT Dollar Denominated Gold Futures Contracts

Freedom of Government Information in Taiwan

Taiwan’s Freedom of Government Information Act (FGIA) took effect in 2005. It was enacted to

…establish institutions for the publication of government information, facilitate people to share and fairly utilize government information, protect people’s right to know, further people’s understanding, trust and overseeing of public affairs, and encourage public participation in democracy. FGIA § 1 (translation slightly revised).

Despite these broad policy objectives, disclosure of government information under the Act is preempted by other laws governing disclosure. FGIA § 2. For example, Taiwan’s Classified National Security Information Protection Act provides that top secret documents are automatically declassified after 30 years, but the black out period can be extended once for another 30 years. This rule partially frustrated China Times reporter Jiang Hui-chen’s efforts to investigate the Ministry of Foreign Affairs’s archives by applying under the FGIA for information about Taiwan’s withdrawal from the United Nations in 1972.

The FGIA permits foreigners to apply for information if “the laws of their countries do not restrict nationals of the Republic of China from requesting government information in the foreigner’s country.” FGIA § 9.

The Chinese-language application for government information is available on the Ministry of Justice’s website. A number of government agencies also provide sample applications with instructions. The application can be filed with any central government agency or local government although first-time or overseas applicants may need assistance in determining the correct agency. After an application is filed, the agency has 15 days to act on the request for information. The review can be extended once for 15 more days. FGIA § 12.

If the information relates the rights or interests of another person, legal person, or group, the government agency is required to notify the third party of the request in writing. The third party has 10 days to comment. FGIA § 12.

The agency should approve the application if the public interests served by the requested disclosure outweigh the harm to third party rights caused by the disclosure.

Unfortunately, there is no single source for statistics on requests approved and denied. Subordinate agencies and local governments report approvals and denials on their websites regularly but only in Chinese. Nonetheless, a few examples will show that requests are made and approved with some frequency. For example, the National Immigration Agency had 300 requests for files in the first three quarters of 2012. Of these 111 requests were approved in full while 118 were partially approved. Seventy-one applications were completely denied.

In the first quarter of 2012, The Ministry of Foreign Affairs received 2,070 applications for files and approved all of them in full.

Perhaps surprisingly, the Environmental Protection Agency received just 6 applications in 2011. Four applications were for files and two ere for “other government information.” Of these applications, just one was approved in full, three were partially approved, and two were denied. The Environmental Jurists Association has a thorough discussion (again in Chinese) of a hypothetical application by a citizen who wants to obtain information about a polluting factory where the polluting factory objects to the disclosure.

An applicant for government information can appeal agency decisions that deny access to information. The appeal must be first made to the denying agency before the unsuccessful applicant has standing to challenge the decision in the administrative courts.

Applicants regularly bring actions in the administrative courts when their applications are denied.

In 2010, the Ministry of Justice compiled freedom of information cases that reached Taiwan’s Supreme Administrative Court between late 2005 and 2010. The cases involved 14 of the FGIA’s 24 Articles. Article 18, which sets forth restrictions on government disclosures of information, was the most frequently cited provision.

In these 41 cases, just three plaintiffs prevailed. The prevailing plaintiffs included a construction company who had been the subject of an adverse decision by Taiwan’s Fair Trade Commission. The company sought complete records of the Commission’s proceedings in the case that resulted in the adverse decision. Pan Zi No. 130 (2008).

The second successful plaintiff was an individual seeking information from the Ministry of Defense about a military housing compound for use in other litigation. Cai Zi No. 4335 (2008).

The third successful plaintiff was the Humanistic Education Foundation, a well-known education reform group. The Foundation sought information and documents related to Changhua County’s 2006 Textbook Selection Pilot Program from primary and secondary schools in Changhua. Pan Zi No. 579 (2010).

Taiwan Financial Ombudsman Institution in 2012

Taiwan’s Financial Ombudsman Institution (FOI) is reporting that it received 4,739 complaints from investors against financial institutions in 2012 and 2,846 applications for decisions in its first full year of operations.

The FOI was established under the Financial Consumer Protection Act (FCPA) as a public-interest foundation whose mission is to resolve disputes between financial consumers and financial service providers including banks, securities firms, and insurers. We reviewed the FOI’s operations, organization, and early results last April.

In 2012, the FOI made 82 decisions awarding damages or other remedies. Of these, 32 were banking disputes, 38 were life insurance disputes, and 2 were property insurance disputes. Insurance disputes include disputes between insureds and insurers, insurance brokers, insurance agents, and loss adjusters.

According the FOI’s categorization of disputes decided in 2012, most banking disputes involved solicitation, failure to provide agreed-upon services,and account-related disputes. Disputes over life insurance claims most frequently involved the cause of death, the amount of the insurance payment, and the scope of coverage. Other types of life insurance disputes included solicitation disputes, disputes over the termination and revival of coverage, and disputes over agreed-upon services.

Property insurance disputes over claims included disputes over the degree of the property loss, the amount of the insurance payment, and delays in making payments.

Other types of property insurance disputes included disputes over failures to provide promised services, renewals, and claim handling procedures.

Partners attend IPBA Annual Meeting in Seoul

Partners Chen Hui-ling and Peter Dernbach are attending IPBA 2013 in Seoul this week. Over 1,200 IPBA members from over 67 national jurisdictions worldwide are attending. This year’s theme is the future of law and business in the Asia-Pacific region and will also serve as an opportunity for participants to experience South Korea’s dynamic economy first-hand and meet leading practitioners in South Korea’s recently liberalized legal services market.

Implementation of Taiwan’s new privacy law

Partner Chen Hui-ling contributed this comment to Privacy Laws & Business International Report on the implementation of Taiwan’s new Personal Information Privacy Act since October 2012. Her article appeared in the February 2013 issue.

Wrongful termination and age discrimination in a Taiwanese employment dispute

The Japan Airlines subsidiary in Taiwan dismissed eighteen of its Taiwanese flight attendants with severance as its parent company was undergoing financial difficulties in 2010. The employees filed a complaint with the Taipei City Council for Labor Affairs.

The Council found that when comparing across equivalent ranks of responsibility, those employees which were dismissed were all on average older than those who kept their jobs. Specifically, the Council determined that the dismissals were in violation of the Employment Service Act’s Article 5 prohibition against age discrimination, which prohibits employers from “discriminating against any job applicant or employee on the basis of… age.” The Taiwan subsidiary was fined 600,000NTD (approximately 20,000USD) and lost its appeal of the fine in Taiwan’s Administrative Court.

Two of the employees went on to file a civil action against the airline in Taipei District Court, arguing that in light of their wrongful dismissal, they still had an ongoing employment relationship with the airline. The District Court judge determined that while Japan Airlines did indeed base its decisions for dismissal based on the employees’ cost to the company, the higher salaries of the more senior employees meant that in the end the oldest employees were forced out. While this conduct was not directly discriminatory, the judge noted that Article 5 prohibits age discrimination without making a distinction between whether it is direct or indirect. The dismissals were found to be indirectly discriminatory decisions in violation of Taiwan’s employment law.

The civil court judge ruled that because the forced dismissal of the two flight attendants constituted an illegal act of age discrimination, the termination of their employment contracts was invalid. According to the judgment, the flight attendants still had an existing employment relationship with the airline vis a vis Article 71 of the Civil Code, which reads: “A juristic act which is contrary to an imperative or prohibitive provision of law is void, unless nullity is not necessarily implied.”  According to the judge, the wrongful termination was a ‘juristic act’ in violation of Article 5, an imperative provision of the Employment Services Act, and therefore legally void. As such, the flight attendants were entitled to resume their work as well as backwages from the date of their termination.

A subsequent appeal by the Taiwan subsidiary of Japan Airlines was dismissed by the Supreme Administrative Court.

Winkler Partners-Ahui Community Supported Agriculture program

Winkler Partners’ and Ahui’s transitional organic farm were written up this week in a Liberty Times article about Community Supported Agriculture (CSA) in Taiwan.

The article highlighted Winkler Partner’s partnership with Ahui’s farm in Tucheng, which since 2009 has provided our firm’s employees with weekly deliveries of fresh produce. Through the CSA model, Winkler Partners employees prepay for the produce several months in advance, sharing in the risk and rewards of each season’s harvest.

Ten percent of the money for the vegetables goes toward a fund to help the farm weather damage caused by natural disasters. Last year, Winkler Partners was able to contribute $10,000 NTD toward the purchase of seedlings to replace a major crop loss due to torrential rains.

The article also covered other CSA programs in Taiwan, including the Fushan CSA, the Chien-jia Village Farm CSA, and the Gudong Club.

Learn more about Winkler Partners’ CSA program here.

Winkler Partners welcomes New IP associate and intern

We are excited to welcome Virginia Yu-hung Yuan to the Winkler Partners team. She brings experience in foreign Intellectual Property law, particularly in trademark strategy advising for the science and technology industries.

Virginia holds an LLB degree from Soochow University and an LLM from the University of Houston, where she specialized in Intellectual Property. Virginia is admitted to practice in New York State.

We also welcome Tsao Po-chen. Po-chen will intern at Winkler Partners before going to the US to earn an LLM degree. Po-chen is admitted in Taiwan and hopes to pursue a career in public service after her studies abroad.

Translations of Taiwan securities laws and regulations updated

Taiwan’s official portal for securities-related laws and regulations was recently updated with changes to nine of its English translations by Winkler Partners.

The Winkler Partners Translation Department has produced the English translations of securities laws and regulations for the portal since 2002. The portal is updated twice a month with new and revised content.

Currently, the site contains 1,451 securities laws and regulations, 577 of which have been translated into English. The site also contains 6,514 administrative letters of interpretation and 1,78o court judgments.

1. Enforcement Rules of the Personal Information Protection Act

2. Taiwan Stock Exchange Corporation Procedures for Press Conferences Concerning Material Information of Listed Companies

3. Regulations Governing The Use Of Trading Information

4. GreTai Securities Market Procedures for the Review of Financial Reports of GTSM Listed Companies

5. GreTai Securities Market Rules Governing Management of Foreign Currency Denominated International Bonds

6. GreTai Securities Market Supplemental Directions for Applications by Financial Holding Companies for GTSM Listing

7. GreTai Securities Market Supplemental Directions for Applications by Investment Holding Companies for Over-the-Counter Listing

8. GreTai Securities Market Supplemental Rules Governing Applications by Group Enterprises for GTSM Listing of Stock

9. Standards for Determining Unsuitability for GTSM Listing under Article 10, Paragraph 1 of the GreTai Securities Market Rules Governing the Review of Securities for Trading on the GTSM

Winkler Partners recognized in Chambers

Winkler Partners has been ranked by UK-based legal directory Chambers in its Asia Pacific 2013 Guide for work in Employment, Insurance Law, and Intellectual Property. WP’s Intellectual Property practice was especially distinguished for “its combination of impressive international experience and in-depth local knowledge.”

Peter Dernbach was singled out by a source as “a very smart lawyer who is very capable, a fast learner and willing to invest time and effort for the client.” Chen Hui-Ling was noted for handling a number of insurance cases and being “very good at coverage analysis.”

Winkler Partners is grateful to both the Chambers team and those clients who agreed to talk to the Chambers researchers about their experiences with our firm.

 

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