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Taiwan: Changes to law governing companies

Taiwan: Changes to law governing companies

Revisions to the law governing companies in Taiwan were passed by the Legislative Yuan earlier this year.


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Before the new legislation, the Company Act had not been substantially revised since 2001. The changes were determined to be needed as a response to certain economic developments.

Among the measures included in the new law are items that:

  • Introduce a "no par value" share system for non-public companies
  • Increase the types of "preference shares"
  • Relax the restrictions on corporate bond issuance amount
  • Relax the issuance of "convertible corporate bonds and corporate bonds with stock options"
  • Provide certain corporate governance measures, including provisions affecting directors and boards 
  • Repeal the recognition regime for foreign companies


Read an October 2018 report [PDF 291 KB] prepared by the KPMG member firm in Taiwan

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