萬國法律事務所

Taiwan's Legislative Yuan passed a law regulating private foundations on 27 June, which aims to increase Government supervision over more than 100 organizations that receive Government funding.

The legislation is not applicable to irrigation associations because these are considered public institutions. Also, religious organizations are excluded from the scope of the new legislation, as the legislators decided that such organizations should properly be regulated by a separate law, which may be drafted in the future.

One controversial clause in the new legislation is a provision that allows the Government to take control of foundations that are originally established by the Government and later became private. The Government would take control of such foundations by buying the majority of the stakes. Lawmakers of the Kuomingtang Party (KMT) were strongly against including this provision, however, it was nonetheless passed in a vote with the support from the Democratic Progressive Party (DPP) legislators.