The Taiwan Stock Exchange (TWSE) has changed the classification of Taiwan Land Development Corp (TLDC, 台灣土地開發) shares to “full-delivery stock,” since checks from the company began to bounce and its management team became embroiled in controversy.
On Monday and Tuesday, the company had a total of NT$199 million (US$7.15 million) in bounced checks due to insufficient funds, the stock exchange said in a statement on Tuesday.
A certified accountant has said in a report that there is considerable uncertainty about whether the company can continue operations, the TWSE said.
Photo: CNA
The company on Jan. 26 said that chairwoman Chiu Yu-yun (邱于芸) had been dismissed amid a management controversy, but on Monday, Chiu said that she remained in the position and would defend her rights by any means.
If TLDC is unable to repay its debts and settle its disputes in the next three months, trading of its shares would be halted, Securities and Futures Bureau Chief Secretary Kao Ching-ping (高晶萍) said on Tuesday.
TLDC shares had since April last year been under exchange scrutiny due to bounced checks at financial institutions.
As the TWSE has classified TLDC shares as requiring full delivery, investors would not be able to buy them on margin, Kao said.
If TLDC could not make improvements to its business after another six months, its shares would be delisted from the main board, she said.
TLDC said in a regulatory filing on Monday that it had negotiated with the parties it owed after its business was affected by fallout from the COVID-19 pandemic.
TLDC shares yesterday closed 9.87 percent lower at NT$3.56 in Taipei trading.
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