Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Taiwan Proposes Draft Changes to Mergers, Acquisitions Rules

Don't Miss Out —
Follow us on:

Nov. 21 (Bloomberg) -- Taiwan lawmakers will debate the first amendments to its mergers and acquisitions law in nearly a decade aimed at making transactions easier and protecting shareholder rights.

The island’s cabinet approved draft rules today, which are now subject to legislative review, according to a statement on the government’s website. Revisions would allow greater flexibility in deal structures and permit large shareholders to participate in acquisition or spinoff decisions, Chen Mi-shun, deputy director-general at Ministry of Economic Affairs’ Department of Commerce, said by phone today.

“Mergers will increase significantly after the rules eased as it simplifies the process and diversifies the means of payment into cash or shares,” said Alan Jih, senior attorney at Jones Day.

Cash could be used for acquisitions and spinoffs, an easing of existing rules requiring the use of stock only, Chen said. Companies would establish special committees comprised by independent board directors and auditors, under the proposed rules, for reviewing the price and terms of mergers or acquisitions, Chen said.

Taiwan’s laws for mergers and acquisitions were introduced in 2002 and were first revised in 2004, according to the island’s cabinet.

To contact the reporter on this story: Adela Lin in Taipei at alin95@bloomberg.net

To contact the editor responsible for this story: Debra Mao at dmao5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.