Regulations Governing Investment in Securities by Overseas Compatriots and Foreign Nationals Article 24

With respect to their holdings of overseas corporate bonds (issued or privately placed by an issuer) to which conditions attach that allow for conversion or subscription to stock, overseas compatriots and foreign nationals may, in accordance with the terms of issuance and conversion or subscription, request to receive securities issued by an issuer (either through bond conversion or the exercise of subscription rights).An overseas compatriots or foreign national holding overseas corporate bonds privately placed by an issuer shall not request to exchange the bonds or subscribe to the stock of another listed or OTC company in accordance with the terms of issuance and conversion or subscription until at least 3 years from the date of delivery of such privately placed overseas corporate bonds.Where an overseas compatriots or foreign national holding privately placed overseas corporate bonds converts the bonds (or exercises subscription rights attached thereto) to acquire securities issued by an issuer, and stock dividends or new shares are subsequently distributed out of earnings or capital reserves, the shares thus received by such person shall not be sold on the domestic market until at least 3 years after the privately placed overseas corporate bonds have been delivered and the issuer has filed a supplemental public issuance with the FSC.