1.     Date the fine was imposed: Dec. 7th, 2016
2.     Recipient of the fine: Mr. Lin, Responsible Person of Transasia Airways Corporation. (TWSE listed company code: 6702)
3.     Legal basis of the fine: Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act, and Article 7, subparagraph 8 of the Securities and Exchange Act Enforcement Rules.
4.     Facts of the violation and reasons: Transasia Airways Corporation “(the “Company”) signed two money trust agreements on November 17, 2016 with the purpose of meeting obligations for "Consumers'' refund" and "Employees'' salary, leavepay, and pension payments." The amount of entrusted property was NT$600 million for each trust, aggregating to a sum of NT$1.2 billion, and the money was transferred into the respective trust accounts on the same date. Despite the significant impact of this decision on shareholders'' interests, the company did not announce these trust arrangements over the Market Observation Post System until November 22, 2016, and the afterward announcement failed to address the purposes and details of the two trust arrangements. The company was found to have committed a major violation against Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act, and Article 7, subparagraph 8 of the Securities and Exchange Act Enforcement Rules, which requires a company to announce and report signing of any contract that has a major impact on the company''s financial position, business performance or shareholders'' interests by no later than 2 days after occurrence.
5.     Resulting fine: An administrative fine of NT$2,400,000 was imposed on the responsible person of Transasia Airways Corporation pursuant to Article 178, paragraph 1, subparagraph 4 and Article 179, paragraph 1 of the Securities and Exchange Act.

Contact: Section Chief Mr. Wencheng Lin, Corporate Finance Division ,Security and Futures Bureau.
Contact number: (886) 2- 2774-7311
If you have any questions, please email us at:
http://fscmail.fsc.gov.tw/FSC-SPS/SPSB/SPSB01002.aspx