Newsletter
AGREED PRICE OF EMPLOYEE STOCK WARRANTS
According to an interpretation issued by the Ministry of Economic Affairs on 7 September 2004, when a non-public-issuing company issues stock warrants certificates to employees in ac-cordance with the Company Act, the agreed subscription price must not be below the par value of the shares, so as to conform to the prin-ciple of capital adequacy and to protect the in-terests of the shareholders. However, the par value of shares of a non-public-issuing company is not limited to NT$10, but may be set at any amount that the company decides on according to its actual needs.
As for employee stock warrants issued by a public-issuing company, the Financial Supervi-sory Commission (FSC) stated in an interpreta-tion dated 23 July 2004 that under the provisions of the Criteria Governing the Offering and Is-suance of Securities by Issuers, when an issuer honors stock warrants, it is not subject to the rule that the issue price shall not be less than par value. Thus employees can subscribe for new shares at a discounted price provided in the is-suance rules, without the need for prior approval from the FSC.