I.    Date of punishment was imposed: March 7, 2017
II.    Recipients of the punishment: Chen, XX (hereinafter “Chen”), the responsible person of Kunyue Development Co., Ltd (hereinafter “Kunyue”).
III.    Legal basis of the punishment: Articles 26-3-8, 178-1-7 and 179-1 of the Securities and Exchange Act and Articles 16-1 and 17-1-7 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
IV.    Facts of the violation and reasons: Kunyue held a Board of Directors meeting on December 24, 2015 to discuss the year-end bonus for managers and another Board of Directors meeting on March 8, 2016 to discuss the distribution of remunerations to employees. In both Board of Directors meetings, circumstances, in which directors had interests in the issues discussed in the meeting without stating the content of those interests, were found and the minutes of the aforesaid Board of Directors meetings did not record the names of directors who had interests in those matters, the illustration of the content of the interests, reasons for recusal or non-recusal, as well as the recusal situation. These violated Articles 16-1 and 17-1-7 of Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
V.    The disciplinary action: Pursuant to Article 178-1-7 and Article 179-1 of the Securities and Exchange Act, we impose a fine of NT$ 240,000 on the responsible person of the company.
Contact Unit: Chen, Hsian-Yin, Division Chief of Corporate Finance Division
Contact Number: 2774-7120
If you have any questions, please visit：http://fscmail.fsc.gov.tw/FSC-SPS/SPSB/SPSB01002.aspx