Whilst the prosperity of private enterprises is one of the main drives to promote national’s economic development, to have more diversified and flexible ways to help fund raising of enterprises private placement is surely one of key means to achieve this end. An economic, speedy, diversified way to raise need capital is essential to a corporation in order to promote its competitiveness. Private placement may serve this purpose. During more than ten years since the Taiwan’s authorities launched the private placement regime by amending the Company Act and Securities Exchange Act in 2001-2002, the private placement has become a significant fund raising manner for public companies. It has been working efficiently in terms of helping public listing companies which ever faced financial issues, getting capital injection timely and therefore survive over crisis. The standard scope, conflicts and uncompleted parts are all worth to probe.
Taiwan’s private placement system has been followed from those of the U.S. Such a comparative approach may prompt appropriate future reforms on the law and regulation of private placement in Taiwan. Nevertheless, private placement may furnish corporations and inexpensive way to raise need capital, it will inevitably touch upon the interests of shareholders, creditors, and other constituencies. In practice, private placement system remains room for improvement; such that the subscriber and the issuer are not in a reciprocal position, and thus the issuer should be obligated to provide the company’s relevant information.
Whether the American private placement experience can fully implant into ours is still an open question. By employing the comparative study methodology this research project therefore will seek to explore those issues remained in hope to be able to be of contribution to practical reference in the future.
