1.Date the punishment was imposed: April 16, 2018

2.Recipient of the punishment: Responsible person Wu OO of Shin Kong Textile Co., Ltd.

3.Legal basis of the punishment: paragraph 8, Article 26-3; subparagraph 7, paragraph 1, Article 178 and paragraph 1, Article 179 of the Securities and Exchange Act.; paragraph 2, Article 3 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies  

4.Facts of the violation and reasons: In its meeting dated April 13, 2017, the board of directors of Shin Kong Textile Co., Ltd. discussed the proposal for capital reduction. This proposal is not considered as an emergency. The Company, however, did not inform each director and supervisor of the purpose of the meeting at least seven days in advance, which constitutes a violation of Paragraph 2, Article 3 of the Regulations Governing Procedures for Board of Directors Meetings of Public Companies.

5. The disciplinary action: Pursuant to subparagraph 7, paragraph 1, Article 178 and Article 179 of the Securities and Exchange Act, an administrative fine of NTD240,000 was imposed on the responsible person of the Company.

 

Contacting Unit: Chang Yi-Xin, Head of the Corporate Finance Division, Securities and Futures Bureau 

Telephone: 2774-7409