The board of the Taiwan Stock Exchange Corp yesterday appeared to have taken outside criticism into consideration and postponed endorsing a proposal that would give it sweeping powers in granting approval to companies that plan to go public.
"Giving its initial approval [yesterday], the board will finalize the proposal next month after supporting measures are further hammered out," Su Song-chin (
The proposal suggests revising the make-up of the stock exchange's 15-member review committee, which screens listing plans of firms that plan to go public.
Currently, the review committee recruits 12 outside members.
The stock exchange's chairman, Wu Nai-jen (吳乃仁), said on Monday the appointment of outside board members was to be scrapped and the committee would be downsized to seven members.
He also said the exchange would take full responsibility for reviewing listing applications.
But his proposal was immediately criticized for vesting the exchange with the sole power to decide which firms can go public.
In response, Su yesterday said that flexibility will be maintained in the stock exchange's review committee reform proposal.