Amendments to the Company Act

Recognizing the need to enhance Taiwan’s business environment to stay competitive in the global market, the Tsai administration has enacted a series of ambitious policy changes and legal amendments aimed at stimulating innovation and growth. Most fundamental to these goals are the sweeping changes made to the Company Act, Taiwan’s basic law governing business operations, that were passed by the Legislative Yuan in a late session on July 5 and promulgated into law on August 1.

To help AmCham members and guests better understand the scale and implications of these amendments, AmCham Taipei’s Tax Committee invited Chen Yen-po, Executive Specialist with the Department of Commerce under the Ministry of Economic Affairs (MOEA), to host an explanatory seminar in the Chamber’s Lincoln Room on September 13. Chen and the MOEA worked closely not only with the Legislative Yuan but also the private sector, including business professionals, legal experts, and academics, on enacting the amendments. Chen noted that 148 articles to the Company Act were amended, with at least four articles deleted and replaced.

From left to right: Chen Yen-po, Executive Specialist with the Department of Commerce under the Ministry of Economic Affairs (MOEA) and AmCham Taipei’s Insurance Committee Co-Chair Dylan Tyson, President & CEO, Prudential Life Insurance Company of Taiwan Inc.

Key amendments are intended to:

• Enhance business transparency by clarifying reporting obligations and abolishing anonymous “bearer shares.”
• Improve the environment for startups by permitting the issuance of non-par-value shares, as well as permitting multiple distribution of cash dividends throughout the year.
• Enable greater flexibility in business operations by furthering the gradual digitalization of documentation, increasing the range of rewards possible for talent, and reducing restrictions on directorships.
• Strengthen shareholder protections by amending rules on shareholder meetings and the nomination of directors.
• Improve corporate governance through enhancing disclosure requirements and access to shareholder rosters.
• Allow the registration of company names in English so as to help foster international business operations and branding.

Chen added that the MOEA is currently in the process of developing the regulatory framework that will see these amendments enter into force. His presentation was followed by a lively Q&A session.

The Lincoln Room is made possible by the generosity of a number of sponsoring companies:

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