Taiwan Financial Supervisory Commission reports Legislative Yuan approval of amendments expanding protection institution litigation grounds and funding

Taiwan’s Financial Supervisory Commission reported that the Legislative Yuan has approved amendments to the Securities Investor and Futures Trader Protection Act proposed by the Executive Yuan, widening the circumstances in which the protection institution can bring actions against company directors and supervisors and broadening its operational funding sources. The changes add independent grounds for the protection institution to initiate derivative suits and discharge suits where directors or supervisors are involved in securities fraud, non-arm’s length transactions, embezzlement, or breach of trust, and clarify that the revised provisions apply to ongoing lawsuits that have not yet reached a final and binding judgment or ruling. Funding for the institution’s operations is expanded beyond the current year’s interest on the protection fund to also include accumulated surplus remaining after business expenses are covered from prior years’ interest.