TAIWAN Law and Practice Contributed by: Stephen Wu, Yvonne Hsieh, Wei-Han Wu and Erica Chiu, Lee and Li, Attorneys-at-Law
(b) the geographic market; and (c) horizontal and vertical competition status (including major competitors). • Information regarding the possible obstacles to entering the relevant market, including: (a) the minimum capital or working capital requirement for entering the relevant mar - ket, if any; (b) the legal restriction for entering the rel - evant market, if any; (c) the intellectual property involved in the relevant market, if any; (d) the materials supply sources, if any; (e) the ratio of the fixed cost to the total cost of the production of relevant products, if applicable; (f) the tariff or non-tariff barrier, if applicable; (g) the transaction’s impacts on the market, if any; and (h) any other obstacle regarding the market entry. • An economic analysis of: (a) the advantages created by the proposed transaction to each of the participating parties; (b) the disadvantage to each of the partici - pating parties if the proposed transaction is prohibited; (c) the advantages created by the proposed transaction to the overall economy in Taiwan created by the proposed transac - tion; and (d) the anti-competition disadvantages to the Taiwan market caused by the proposed transaction. • The participating parties’ investment status in Taiwan, such as subsidiaries and branches. The following supporting documents should be enclosed with a filing:
• the participating parties’ latest annual reports or financial reports; • a copy of the definite agreement of the pro - posed transaction or resolutions adopted by the board meeting of the participating parties approving the proposed transaction; • a power of attorney executed by the par - ticipating parties’ ultimate parent company authorising local counsel to file the combina - tion notification on their behalf; and • the participating parties’ most recent certifi - cate of incorporation. Filings must be submitted in Chinese (Manda - rin). If any document is written in a foreign lan - guage, an excerpted translation should also be prepared. All other documents can be in dupli - cate copy, except the power of attorney, which should be an original copy (no certifications, notarisations or apostilles are required). 3.6 Penalties/Consequences of Incomplete Notification In practice, the TFTC may reject the filing or request the parties to withdraw the filing if the notification is deemed incomplete after several rounds of requests for information (RFIs). There is no penalty under such circumstance but the parties cannot close the deal since no clearance has been granted. 3.7 Penalties/Consequences of Inaccurate or Misleading Information The TFTC may impose penalties, including the prohibition of the combination, divestiture, trans - fer of the business acquired and/or removal of personnel designated by the enterprises, if it discovers that the notifying party is deemed to have supplied inaccurate or misleading informa - tion in the filing and proceeds with the combina - tion. The TFTC also has the power to impose an
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