萬國法律事務所

The Executive Yuan has approved a draft amendment to the Insurance Act on October 29, 2015. According to the amendment, an insurance company will be permitted to serve as a director/supervisor of a company in which it has invested where such company is engaged in public construction or social business.

Under the current Insurance Act, it is difficult for an insurance company to supervise the funds invested by it because it is not permitted to serve as a director/supervisor of the company in which the investment is made. As such, insurance companies have largely refrained from investing in companies that are engaged in public construction projects. In addition, an insurance company is prohibited from investing in a company engaged in social welfare business under current Insurance Act.

It is expected that funds of up to NTD 1.5 trillion may be encouraged to invest in companies engaged in public construction projects or social welfare busineses after the amendment is passed by the legislature.