1.     Date the fine was imposed: March 20, 2017
2.     Recipient of the fine: Mr. Tsai, Responsible Person of  Elite Material Co., Ltd. (TWSE listed company code: 2383)
3.     Legal basis of the fine: paragraph 8, Articles 26-3, sub-paragraph 7, paragraph 1, Article 178 and paragraph 1, Article 179 of the Securities and Exchange Act and paragraph 1, Article 16 and sub-paragraph 7 ,paragraph 1, Article 17 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
4.     Facts of the violation and reasons: The Board of Directors of the said company passed the appointment and the remuneration of the Chief Strategy Officer on June 27, 2016. On that day, a member of the Board failed to disclose the personal conflict of interest in the aforesaid matters, and the minutes of the Board meeting failed to provide the name of the conflicted director, the material fact of such conflict of interest, grounds for recusal or non-recusal, and the state of recusal. It is therefore determined as a violation against paragraph 1, Article 16 and sub-paragraph 7 ,paragraph 1, Article 17 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
5.     Resulting fine: An administrative fine of  NT$240,000  was imposed on the responsible person of Elite Material Co., Ltd. pursuant to sub-paragraph 7, paragraph 1, Article 178 and paragraph 1, Article 179 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