Regulations Governing the Offering and Issuance of Securities by Securities Issuers Article 18
If the number of registered shareholders holding 1,000 shares or more of a company whose shares are neither listed on an exchange nor traded in the business places of securities firms does not reach 300, or the company fails to reach the shareholding dispersion standard prescribed by the competent authorities, upon conducting cash offering of new shares, the company shall allocate 10 percent of the new shares for public offering and is exempted from paragraph 3 of Article 267 of the Company Act which prescribes that the current shareholders shall be entitled to subscribe the new shares in proportion to their respective shareholding percentage, unless any one of the following events occurs. However, if the shareholders meeting decides to set a higher percentage, its resolution shall be applicable:1. It conducts the initial public offering.2. It has been incorporated for less than 2 complete fiscal years.3. Both the company's final operating income and the pre-tax income as ratios of the equity attributable to owners of the parent as reported in the financial reports fail to meet any of the below conditions. However, the profitability as reported in the financial reports does not take into account the effects on the company brought about by the net profit (or net loss) attributable to its non-controlling interests.A. The said ratios for the most recent fiscal year reach 2 percent or more, and the company has no accumulated losses for the most recent fiscal year.B. The said ratios for the most recent 2 fiscal years reach 1 percent or more.C. The average of the said ratios for the most recent 2 fiscal years reaches 1 percent or more, and the profitability of the company for the most recent fiscal year is more favorable than that for the previous fiscal year.4. The number of shares allocated for public offering in accordance with the 10 percent requirement or the percentage set by the resolution of the shareholders meeting does not reach 500,000.5. Preferred stocks with warrants are issued.6. Any situation where the FSC deems the public offering unnecessary or inappropriate.Where a company is a major national economic enterprise as determined and certified by the competent authority for the enterprise, the provisions of subparagraphs 1 through 3 of the preceding paragraph shall not be applicable.Where an issuer publicly offers its securities in accordance with paragraph 1, the prices for the employees of the issuer or the original shareholders to pay for the new shares in the same issuance shall be the same as the price set for public offering, and it shall be noted in the prospectus and subscription form that its shares are neither listed on the Stock Exchange nor listed and traded on any OTC market.
中文原文 發行人募集與發行有價證券處理準則第18條
未上市或未在證券商營業處所買賣之公司，其持股一千股以上之記名股東人數未達三百人；或未達其目的事業主管機關規定之股權分散標準者，於現金發行新股時，除有下列情形之一外，應提撥發行新股總額之百分之十，對外公開發行，不受公司法第二百六十七條第三項關於原股東儘先分認規定之限制。
但股東會另有較高比率之決議，從其決議：
一、首次辦理公開發行。
二、自設立登記後，未逾二年。
三、財務報告之決算營業利益及稅前純益占歸屬於母公司業主之權益比率均未達下列情形之一。
但前述財務報告之獲利能力不包含非控制權益之淨利（損）對其之影響：
（一）最近年度達百分之二以上，且其最近一會計年度決算無累積虧損。
（二）最近二年度均達百分之一以上。
（三）最近二年度平均達百分之一以上，且最近一年度之獲利能力較前一年度為佳。
四、依百分之十之提撥比率或股東會決議之比率計算，對外公開發行之股數未達五十萬股。
五、發行附認股權特別股。
六、其他本會認為無須或不適宜對外公開發行。
屬國家重大經濟事業且經目的事業主管機關認定並出具一定證明者，得不受前項第一款至第三款之限制。
依第一項對外公開發行時，同次發行由公司員工承購或原有股東認購之價格，應與對外公開發行之價格相同，並應於公開說明書及認股書註明公司股票未在證券交易所上市或未於證券商營業處所上櫃買賣。
但股東會另有較高比率之決議，從其決議：
一、首次辦理公開發行。
二、自設立登記後，未逾二年。
三、財務報告之決算營業利益及稅前純益占歸屬於母公司業主之權益比率均未達下列情形之一。
但前述財務報告之獲利能力不包含非控制權益之淨利（損）對其之影響：
（一）最近年度達百分之二以上，且其最近一會計年度決算無累積虧損。
（二）最近二年度均達百分之一以上。
（三）最近二年度平均達百分之一以上，且最近一年度之獲利能力較前一年度為佳。
四、依百分之十之提撥比率或股東會決議之比率計算，對外公開發行之股數未達五十萬股。
五、發行附認股權特別股。
六、其他本會認為無須或不適宜對外公開發行。
屬國家重大經濟事業且經目的事業主管機關認定並出具一定證明者，得不受前項第一款至第三款之限制。
依第一項對外公開發行時，同次發行由公司員工承購或原有股東認購之價格，應與對外公開發行之價格相同，並應於公開說明書及認股書註明公司股票未在證券交易所上市或未於證券商營業處所上櫃買賣。