15 October, 2018
The procedure for company registration is simplified in the newly amended Regulations Governing Company Registration and Recognition and in the the Company Act
The Ministry of Economic Affairs promulgated the amended Regulations Governing Company Registration and Recognition (the “Regulations”) on June 14, 2018. Under the amended Regulations, the document requirement for company registration and for some other registrations are simplified. The permissible use of electronic signature is broadened, and the execution of documents may be made by either seal or signature. Further, if a foreign language document should be clearly cognized by the competent authority, it is unnecessary to submit a Chinese translation thereof. In addition, on August 1, 2018, the President promulgated the amendment to the Company Act (the effective date thereof to be decided by the Executive Yuan). The extent of this amendment to the Company Act is quite broad. One of the major amendments is to abolish the foreign company recognition. Upon the effectiveness of the new amendment, a foreign company would enjoy the same legal capacity as a domestic company within the scope of relevant laws and regulations once it completes the branch company registration. (Dennis Chen)
Enactment of the Foundation Act, providing for the organization, accounting and information disclosure, etc. of certain foundations.
On August 1, 2018, the President promulgated the Foundation Act, which will become effective in February 2019. This Act is applicable for foundations donated by government or civilians, but not for religious foundations. The new Act provides for the terms, responsibilities, qualification, and conflict of interests of the board members and the supervisors, among other things. It also requires that foundations establish accounting system, and disclose their working plans and budgets in order for the public to monitor. (Dennis Chen)
Amendment to the Insurance Act to promote the equal right and interest of disable people in purchasing life insurance
On June 13, 2018, the President promulgated the partial amendment to the Insurance Acts, which includes:
(1) replacing the wording “mental disorder or other mental impairment” and “person of mental incapacity or mental weakness” by “subject to the declaration of guardianship”; and
(2) substituting the word “disability” with “incapacitation”, the meaning of which is to be defined in individual insurance policy. In addition, the amendment relaxs the restriction over the investment in social warefare business by insurance enterprise and allows a qualified insurance enterprise to act as director or supervisor of business it has invested and to exercise voting rights. (Leonard Chen)
Amendment to the three broadcast laws, eliminating the administrative petition procedure.
The President announced the amendments to Radio and Television Act, Cable Radio and Television Act and Satellite Broadcasting Act on June 13, 2018. The amendments eliminate the administrative petition procedure. Under the amended laws, the petitioner who disagrees to the administrative order issued by the National Communications Commission shall bring an administrative action before the Administrative Court directly. (Elvin Peng)
For further information, please contact:
C. Y. Huang, Partner, Tsar & Tsai Law Firm
CYHuang@TsarTsai.com.tw
