萬國法律事務所

Taiwan’s Legislation Yuan recently amended the Taiwan Company Act and as a result public companies in Taiwan are permitted to issue new shares to employees with restricted rights subject to the agreement of a supermajority of the shareholders. Moreover, the amendment allows Taiwan companies to transfer treasury shares to employees with a restriction not to resell said shares for up to two years. Taiwan’s Ministry of Economic Affair expects that the new rules, which echo common international business practices, will attract outstanding employees around the world to join Taiwanese enterprises.

Other amendments permit a public company may become a private company subject to the agreement of the majority of shareholders who hold at least two-thirds of the total issued shares present at the shareholder meeting. In addition, during a shareholder meeting, only shareholders who hold more than 1% of the total issued shares are allowed to raise an ad-hoc motion that relates to the decision passed in the shareholder meeting, and each shareholder is limited to making only one motion. Moreover, in the event that a company wishes to deduct capital, it will be allowed to return property other than cash to shareholders if such return is agreed to and a resolution to this effect is passed at the shareholder meeting.