Newsletter
BOT PROJECT COMPANIES MAY APPLY FOR LISTING
In order to encourage the private sector to participate in major public infrastructure projects (commonly referred to as BOT projects), the Taiwan Stock Exchange (TSE) and Over-the-Counter Securities Exchange (OTC) have completed initial draft regulations regarding the listing of companies specifically established to engage in BOT projects.
According to the initial draft, a BOT company meeting the following criteria may apply for listing on the TSE or OTC Center:
being incorporated as a company limited by shares and with business scope consistent with the scope indicated in the concession contract approved by competent authorities;
for being listed on the TSE, with a paid-in capital in excess of NT$ 5 billion and the project costs in excess of 10 billion;
for being traded over the counter, with a paid-in capital in excess of NT$2.5 billion and the project cost in excess of NT$ 5 billion; and
for being listed on the TSE, with a concession period of not less than 20 years; for being traded over the counter, with a concession period of not less than 15 years.
The major shareholders or management of an applicant company must possess the technical abilities, financial resources, and other required abilities to perform the concession contract, and should have obtained a certificate issued by the central competent authority evidencing such abilities. BOT companies in principle are still subject to the required probation period for general companies. However, the probation period may be waived if the central competent authority provides a written opinion attesting to the effectiveness of the company's accounting and internal control systems.