A Comparative Legel Study on Securities Dematerialization System focusing on the Implementation of Taiwan and China

• Main Authors: Hui-hua Pai, 白蕙華
• Other Authors: 王文杰
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/66710192978483064444

碩士 === 東吳大學 === 法律學系 === 99 === Dematerialization of securities is the main trend for world’s leading stock markets. Other than reducing the printing, certifying and mailing fees of paper form stocks, the benefits of dematerialization also include the reduction of administrative costs of securities custody, transfer, delivery, and inventory check. Furthermore, it can eliminate risks associated with physical certification, such as loss, theft, counterfeit and alteration of securities. Therefore, followed by suggestions of various international depository organizations, many leading markets have started to promote dematerialization in recent years. The development of Taiwan stock market dematerialization will then be in line with the international standards and moving towards to full scale. Dematerialization involves numerous shareholders interests that legalization may be required, yet there are no laws and regulations that compel dematerialized issuance in Taiwan market. Although the competent authority has published acts or directive letters requiring compulsory dematerialization of some securities, however, such rules has not been applied to every issuer to reach full dematerialization. Besides, once the dematerialization of securities has been fully implemented, there will be new challenges for investors who formerly held physical form stocks when they intend to exercise their rights, and relevant issues or topics may be caused accordingly for further discussion. On the other hand, the regulations and the trading systems of Mainland China security market were initiated based on physical certificates. Even though China has accomplished full electronic form securities trading system in just a few years, the dematerialized trading is still not completely acknowledged or covered by the securities related laws. The lack of thorough legislation has resulted to serious uncertainty in China stock market transaction during the past decade. In addition, the unsure atmosphere became more severe after the Real Right Law of People’s Republic of China was promulgated. Investor funds are wrongfully diverted again and again because of dematerialized transactions. To prevent the above misdeed and manage risks, many scholars and industry professionals have been appealed to make specialized laws for dematerialization of securities. Moreover, new issues will be derived consequently for consideration and discussion as the stock transaction, registering, custody and clearing system are shifted from physical form to electronic form.