The Implementation and Development of Taiwan’s Treasury Stock System
Date Issued
2007
Date
2007
Author(s)
Chen, Tzu-Ya
DOI
zh-TW
Abstract
In this thesis, some suggestions are advanced to improve Taiwan’s regulation of stock repurchases. The legal base for our present system is in Article 28-2 of Securities and Exchange Law and Article 167-1 of Company Law. The former is set up for TSEC and OTC listed companies, and is generally so-called the implementation of treasury stock system whereas the latter is set up for all kinds of companies. To stabilize stock prices was one of the reasons why our authority introduced this system from other countries in 2000. Many academics, however, argued that this system has a lot of drawbacks to be amended, and has many negative effects, such as insider trading, and stock price manipulation.
At first, this thesis introduces the advantages and drawbacks of treasury stock. Secondly, it focuses on introducing our present legal system of company’s buying-back its own stock shares. Then it introduces and compares with the system among many countries like US, Japan, and European. Further, it collects the legal opinions of the concerned authorities to improve the better understanding of our nowadays conditions. Finally, it discusses and analyses the possible models and methods of improving our system and offers some suggestions to improve our present systems of stock repurchases.
By introducing and comparing the treasury stock system in Taiwan and in other countries, this thesis finds that the treasury stock system in Taiwan is quite different from that in other countries, such as the way of decision, the total amount of buyback, information disclosure and so on. Since our enterprises have used the present system for over six years, and in order to balance the tradeoff between efficiency and justice, this thesis provides some eclectic suggestions to improve our present legal system of shares repurchases. This thesis believes that the suggestions will help our country to keep paces with other modern countries. Furthermore, the suggestions will also push our enterprises to maintain the flexibility and efficiency in using the treasury stock system.
Subjects
庫藏股
決議方式
買回總金額
執行率
內線交易
股價操弄
Treasury stock
Repurchases
insider trading
stock price manipulation
Suggestions.
Type
other
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