News / Taiwan / cnyes
FSC to Review Decades-Old Regulations Following Wiwynn Fractional Share Dispute
Electronic Technology · Computer Processing Hardware · cnyes · 2026-09-10
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The Taiwan FSC is set to review a 30-year-old regulation on fractional share cash payouts after investor backlash over Wiwynn's recent dividend distribution.
What Happened
Event Background: Server manufacturer Wiwynn faced investor backlash after its stock dividend distribution resulted in fractional shares. Because these shares are cashed out at a par value of NT$10, investors holding high-priced shares suffered significant value discrepancies, leading to over 100 complaints filed with the FSC.
Regulatory Review: The current practice of cashing out fractional shares at par value is based on a 1997 Ministry of Economic Affairs directive, which is now considered outdated given the prevalence of high-priced stocks. The FSC plans to initiate inter-ministerial discussions to evaluate whether this regulation remains appropriate for today's market.
Implementation Challenges: Regarding proposals for a centralized fractional share trading platform, the FSC highlighted significant technical and institutional hurdles, such as verifying share ownership before official entry and ensuring fair pricing. The regulator remains cautious about creating new systemic risks while trying to solve existing ones.
Short-term Guidance: The FSC has advised listed companies to carefully plan dividend distributions to minimize fractional shares and to improve transparency for shareholders. While existing regulations cannot be applied retroactively, companies are encouraged to consider voluntary remedial measures for affected investors.