Chapter I General Principles Show Article 1 (Legislative Intent) Article 2 (Applicable Scope) Article 3 (Competent Authority) Article 4 (Definition of Company) Article 5 (Definition of Issuer) Article 6 (Definition of Securities) Article 7 (Definitions of Public Offering, Private Placement) Article 8 (Definition of Issuance) Article 10 (Definition of Underwriting) Article 11 (Definition
of Stock Exchange) Article 12 (Definition of Centralized Securities Exchange Market) Article 13 (Definition of Prospectus) Article 14 (Definition of Financial Reports and Regulations Governing Their Preparation) Article 14-1 (Establishment of Internal Control Systems) Article 14-2 (Appointment and Qualifications of Independent
Directors) Article 14-3 (Matters Required to Be Submitted for Approval by Resolution of the Board of Directors) Article 14-4 (Appointment of Audit Committee or Supervisors) Article 14-5 (Company Matters Requiring Consent of the Audit Committee) Article 14-6 (Appointment of a Remuneration Committee) Article 15 (Types of Securities Business) Article 16 (Types of Securities Firms) Article 18 (Approval for Operation) Article 18-1 (Provisions Applied Mutatis Mutandis) Article 19 (Method for Entering Into Contracts) Article 20 (Duty of Good Faith and Liability for Damages (1)) Article 20-1 (Duty of Good Faith and Liability for Damages (2)) Article 21 (Time Limitations on Claims for Damages) Article 21-1 (Signing of Treaties or Agreements for International Cooperation ) Chapter II The Offering, Issuing, Private Placement, and Trading of Securities Section I The Offering, Issuing, and Trading of Securities Article 22 (Public Offering and Issuance of Securities) Article 22-1 (Shareholding Dispersal Standards for Issues of New Shares for Capital Increase) Article 22-2 (Methods for Transfer of Stock by Directors, Supervisors, Managerial Officers, and 10-Percent Shareholders) Article 23 (Time Limitation on Transfer of Stock Warrant Certificates) Article 24 (Constructive Provision Regarding the Status, Following an Issue of New Shares Under the Act, of Pre-Existing Shares That Have Not Been Duly Issued) Article 25 (Filing of the Shareholdings of Directors, Supervisors, Managerial Officers, and 10-Percent
Shareholders) Article 25-1 (Regulations Governing the Management of Proxies) Article 26 (Minimum
Percentages of Registered Shares to Be Held by Directors and Supervisors) Article 26-1 (Content Required to Be Specified in Shareholders Meeting Notice) Article 26-2 (Period and Method for Shareholders Meeting Notice to Small Registered Shareholders) Article 26-3 (Directors
and Supervisors) Article 27 (Maximum or Minimum Par Value Per Share and Changes to Par Value) Article 28-1 (Required Public Offering Percentage for New Share Issues by a Public Company) Article 28-2 (Share Buyback) Article 28-3 (Exercise of Warrants) Article 28-4 (Total Issue Amounts of Corporate Bonds) Article 29 (Issues With a Guaranty Provided by a Financial Institution) Article 30 (Documents Required for Application for Approval of Issuance) Article 31 (Delivery of the Prospectus) Article 32 (Liability for False Information or Omission in the Prospectus) Article 33 (Payment for Subscription of Stocks or Bonds) Article 34 (Delivery of Stocks or Corporate Bonds) Article 35 (Certification) Article 36 (Financial Report Publication and Filing Deadlines) Article 36-1 (Regulations Governing Major Financial or Operational Actions of Companies) Article 37 (Regulation of CPA Auditing and Attestation) Article 38 (Protective Measures for Issues) Article 38-1 (Examination by the Competent Authority) Article 39 (Penalties for Issuer Non-Compliance With Laws or Regulations) Article 40 (Prohibition of Citing Approval for Offering to Support Promotional Appeals) Article 41 (Order to Set Aside Special Reserve) Article 42 (Retroactive Handling of Procedures for Examination and Approval of Public Issuance) Article 43 (Payment or Settlement of Securities Trades) Section II Purchase of Securities Article 43-1 (Regulation of Public Tender Offers for Securities) Article 43-2 (Prohibition of Adverse Changes to Public Tender Offer Conditions) Article 43-3 (Prohibition During the Public Tender Offer Period of Purchase By Any Other Means of the Same Type of Securities of the Public Company or Beneficial Securities of the Real Estate Investment Trust Under the Real Estate Securitization Act) Article 43-4 (Public Tender Offer Prospectus) Article 43-5 (Public Tender Offer Suspension Conditions and Amendments to the Public Tender Offer Report) Section III Private Placement and Trading of Securities Article 43-6 (Private Placement of Securities and Corporate Bonds) Article 43-7 (Conduct Prohibited With Respect to the Private Placement and Resale of Securities) Article 43-8 (Conditions for Further Transfer of Privately Placed Securities) Chapter III Securities Firms Section I General Provisions Article 44 (Approval for Business and Approval for Establishment of a Branch Unit) Article 44-1 (Exemption From the Act
Within Periods and Scopes as Approved to Facilitate Innovation in Financial Technologies and Promote the Financial Regulatory Sandbox) Article 45 (Restrictions on Concurrent Operations and Investment) Article 46 (Distinguishing Between Concurrently Operated Types of Trading) Article 47 (Qualification of a Securities Firm) Article 48 (Minimum Capital Requirement for a Securities Firm) Article 49 (Limit on Aggregate Liabilities of a Securities Firm) Article 50 (Company Nomenclature of Securities Firms) Article 51 (Restrictions on Concurrent Service of Directors, Supervisors, and Managerial Officers) Article 53 (Disqualifications
and Discharge of Directors, Supervisors, or Managerial Officers) Article 54 (Disqualifications of Associated Persons) Article 55 (Operation Bond) Article 56 (Sanctions for Legal Violations of Securities Firms) Article 57 (Voidance of Approval) Article 58 (Filing of Commencement or
Suspension of Business by a Securities Firm) Article 59 (Voidance of Approval) Article 60 (Conduct Prohibited by Securities Firms) Article 61 (Limits and Margin Requirements for Margin Purchases and Short Sales of
Securities) Article 62 (Restrictions on Over-the-Counter Trading) Article 63 (Mutatis Mutandis Application of Article 36) Article 64 (Protective Measures) Article 65 (Corrective Order and Correction of Non-Compliance) Article 66 (Sanctions for Legal Violations by Securities Firms) Article 67 (Winding Up of Business) Article 68 (Constructive Provision for Continued Qualification for Operations) Article 69 (Filing for Registration of Dissolution or Partial Business
Cessation) Article 70 (Regulations Governing Responsible Persons and Associated Persons of Securities Firms) Section II Securities Underwriting Article 71 (Firm Commitment Underwriting of Securities) Article 72 (Best Efforts Underwriting of
Securities) Article 74 (Prohibition Against Underwriter Acquiring Shares Underwritten by It) Article 75 (Regulations Governing Sale of Shares Subscribed by Underwriter) Article 79 (Delivery of the Prospectus by the Underwriter) Article 81 (Restrictions on the Total Amount of Firm Commitment Underwriting of Underwriters) Article 82 (Standards for Compensation for Firm Commitment Underwriting and Commission for Best Efforts Underwriting) Section III Securities Dealers Article 83 (Capacities of a Securities Dealer) Article 84 (Restrictions on Those Currently Conducting Underwriting Business) Section 4 Securities Brokers Article 85 (Approval of the Rate for Commission) Article 86 (Report and Reconciliation Statement) Article 87 (Order Form) Article 88 (Retention of Documents) Chapter IV Securities Dealers Association Article 89 (Securities Association Membership) Article 90 (Content of the Articles of Association and Direction and Supervision of Business) Article 91 (Protective Measures) Article 92 (Legal Violations by Directors or Supervisors) Chapter V Stock Exchange Section 1 General Provisions Article 93 (Special Approval or Permit for Establishment) Article 94 (Organization of a Stock Exchange) Article 95 (Standards for the Establishment of Stock Exchanges) Article 96 (Restrictions on Eligibility to Operate) Article 97 (Name) Article 98 (Restrictions on Business) Article 99 (Operation Bond) Article 100 (Voidance of Special Approval or Permit) Article 102 (Direction, Supervision, and Regulation) Section 2 Membership Stock Exchange Article 103 (Nature of a Membership Stock Exchange and Membership Eligibility) Article 104 (Restriction on Number of Members) Article 105 (Articles of Association) Article 107 (Withdrawal from Membership) Article 108 (Contribution to the Settlement and Clearing Fund and Payment of Transaction Charges) Article 109 (Contribution and Liability) Article 110 (Penalties
for Legal Violations by Members) Article 111 (Expulsion) Article 112 (Winding Up of Trades After Withdrawal from Membership or Suspension of Trading) Article 113 (Numbers and Qualifications of Directors and Supervisors) Article 114 (Mutatis mutandis Application of Article 53 to Directors, Supervisors, and Managerial Officers) Article 115 (Prohibition of Concurrent Service) Article 116 (Prohibition of Benefit Seeking by Insiders) Article 117 (Discharge of Directors, Supervisors, or Managerial Officers for Legal Violations) Article 118 (Mutatis Mutandis Application of the Company Act) Article 119 (Utilization of the Settlement and Clearing Fund) Article 120 (Prohibition Against Disclosure of Confidential Trading Information) Article 121 (Provisions Regarding Directors and Supervisors Applicable Mutatis Mutandis to the Legal Representatives Thereof) Article 122 (Causes for Dissolution) Article 123 (Provisions Applied Mutatis Mutandis to the Qualifications and Discharge of Associated Persons) Section 3 Company-Type Stock Exchange Article 124 (Organization of a Company-Type Stock Exchange) Article 125 (Articles of Incorporation) Article 126 (Prohibition of Concurrent Service by Securities Firms and Their Shareholders or Employees) Article 127 (Prohibition of Trading of Stock) Article 128 (Prohibition of Issuance of Bearer Stock) Article 129 (Entering Into a Contract for Use of the Market) Article 130 (Grounds for Termination of the Contract) Article 132 (Contribution to the Settlement and Clearing Fund and Payment of Transaction Charges) Article 133 (Penalties for Violation of Article 110) Article 134 (Provisions Applied Mutatis Mutandis to Termination of Contract) Article 135 (Contractual Obligation to Wind Up Trades for Others) Article 136 (Obligation to Wind Up) Article 137 (Provisions Applicable Mutatis Mutandis) Section 4 Listing and Trading of Securities Article 138 (Matters to Be Prescribed in the Business Bylaws or Operating Rules) Article 139 (Applications for Listing of Securities) Article 140 (Adoption of Rules Relating to the Examination of Securities for Listing and to the Contract for Public Listing) Article 141 (Entering Into and Recordation of the Listing
Contract) Article 142 (Securities Trading) Article 143 (Listing Fee and Rate) Article 144 (Delisting) Article 145 (Delisting) Article 147 (Recordation of Suspension or Resumption of Trading) Article 148 (Order for Suspension of Trading or Delisting) Article 149 (Listing
of Government Bonds) Article 150 (Securities Trading Venue and Exceptions) Article 151 (Persons Eligible to Trade on a Centralized
Securities Exchange Market) Article 152 (Reporting of Suspension or Reopening of the Market) Article 153 (Handling of Failure to Perform Delivery Obligations) Article 154 (Compensation Reserve and Priority of Claims) Article 155 (Conduct
Prohibited With Respect to Listed Securities) Article 156 (Handling of Securities Events Affecting Market Order or Prejudicial to Public Interest) Article 157 (Right of Disgorgement) Article 157-1 (Regulation of Insider Trading) Section 5 Securities Brokerage Transactions
Article 158 (Brokerage Contract Regulations) Article 159 (Prohibition
of Discretionary Trading) Article 160 (Premises for Taking Brokerage Orders) Section 6 Supervision Article 161 (Protective Measures) Article 162 (Protective Measures) Article 163 (Sanctions for Legal Violations by Securities Exchanges) Article 164 (Supervisory Personnel) Article 165 (Compliance with Directions of Supervisory Personnel) Chapter V-1 Foreign companies Article 165-1 (Provisions Applicable Mutatis Mutandis to Foreign Companies with a Primary Listing on the Exchange or OTC Market and Foreign Emerging Stock Companies) Article 165-2 (Provisions Applicable Mutatis Mutandis to Foreign Companies with a Secondary Listing on the Exchange or OTC Market) Article 165-3 (Administration of Foreign Companies) Chapter VI Arbitration Article 166 (Agreed Arbitration and Compulsory Arbitration) Article 167 (Legal Defense Against an Action) Article 168 (Appointment of Arbitrators) Article 169 (Sanction for Failure to Perform Arbitral Award or Settlement) Article 170 (Adoption of Arbitration Provisions) Chapter VII Penal Provisions Article 171 (Penal
Provisions) Article 172 (Penal Provisions) Article 173 (Penal Provisions) Article 174 (Penal Provisions) Article 174-1 (Penal Provisions) Article 175 (Penal Provisions) Article 177 (Penal Provisions) Article 177-1 (Penal Provisions) Article 178 (Penal Provisions) Article 178-1 (Penal Provisions) Article 179 (Person Punishable for Violation of the Act by a Juristic Person or Foreign Company) Article 180-1 (Penal Provisions) Chapter VIII Supplementary Provisions Article 181 (Constructive Provision Regarding Public Issuance) Article 181-1 (Establishment of a Specialized Court Division or Designate of a Specific Person for Trial of Criminal Cases) Article 181-2 (Time of Application) Article 182-1 (Enforcement Rules) Article 183 (Date of Enforcement) What are the three types of underwriting?Types of underwriting. Loan underwriting.. Insurance underwriting.. Securities underwriting.. Forensic underwriting.. What is meant by standby underwriting?Standby underwriting is a type of agreement to sell shares in an initial public offering (IPO) in which the underwriting investment bank agrees to purchase whatever shares remain after it has sold all of the shares it can to the public.
What are the types of underwriting contracts?There are several different kinds of underwriting agreements: the firm commitment agreement, the best efforts agreement, the mini-maxi agreement, the all or none agreement, and the standby agreement.
What are the two types of underwriting agreement?Broadly speaking, there are two types of underwriting arrangements—firm commitment underwriting and best efforts underwriting. As the name suggests, in firm commitment underwriting, the banks definitively commit to purchase all the securities offered.
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