Taiwan - The Facts That Parties Had Reached Consensus On Important Aspects Of A Merger Agreement And A Letter Of Intent Had Been Executed Could Constitute Material Information, Said The Supreme Court.

Legal News & Analysis - Asia Pacific - Taiwan - Corporate/M&A

16 October, 2018


The Supreme Court rendered Criminal Judgment No. 107-Tai-Fei-Tze-75 on June 6, 2018. 


The Court indicated that the closing of the merger transaction would be foreseeable and could substantially affect the decision of investors if the parties had shown high willingness on the merger, had reached consensus on important aspects of the merger agreement (such as the price of share acquisition or the basic transaction structure), and had executed a letter of intent as a result.  


The Court held that the aforesaid information could constitute material information for purpose of Article 157-1 of the Security Exchange Act even though it was still possible that the merger might fail to come through. 



For further information, please contact:  


C. Y. Huang, Partner, Tsar & Tsai Law Firm