Taipei, Feb. 8, 2010 (CENS)--The same legal entity will not be able to have representation on both a listed company`s board director and supervisor at the same time, according to a decree issued by the Financial Supervisory Commission (FSC) on Feb. 6.

The decree is expected to affect some 100 listed companies, both on the centralized market and over-the-counter market, mainly in finance and tech industries, which, however, are allowed to make the required adjustment after the end of the terms of incumbent board of directors and supervisors.

An FSC official pointed out that some legal entities have representation both on the board of directors and supervisors of listed companies, via their own representatives and representatives of companies with their equity investments, an arrangement designed to bypass article 26-3 of Securities Transaction Law banning legal entities from having such simultaneous representation, which is tantamount to the "supervision of your right hand by your left hand."

In addition to companies with equity investment, legal entities also cannot arrange such simultaneous representation via legal entities which fall under their control or have a subordinated relationship with them, according to the decree.

(by Philip Liu)