China: Taiwan Imposes New Reporting Obligation on Information of Company Shareholders

In Short

The Situation: On November 1, 2018, amendments to the Taiwan Company Act ("TCA") passed by the Taiwanese legislature on July 6, 2018 came into effect.

The Result: While certain regulations have been relaxed and business flexibility increased, the TCA amendments also impose a new reporting duty on the companies relating to information of corporate insiders in order to enhance corporate transparency and governance.

Looking Ahead: The newly implemented reporting requirement is for a Taiwan company (including private companies) to periodically submit a report on the shareholding statuses and other information of its directors, supervisors, officers, and shareholders owning more than 10 percent of its shares to the website designated by the competent authority. The first of these reports are due by January 31, 2019.

The legislature of Taiwan passed a batch of amendments to the TCA on July 6, 2018, with such amendments coming into effect on November 1, 2018. These amendments are part of a major overhaul of the TCA to enhance the competitiveness of Taiwan's business environment and are intended to: (i) increase flexibility in business operations; (ii) enhance corporate transparency; (iii) create a more friendly environment for startups and entrepreneurship; (iv) strengthen corporate governance; (v) enhance shareholder protections; and (vi) conform to international trends.

Some of the key changes applicable to companies limited by shares (i.e., corporations) are discussed below, and these changes will affect foreign investors that have investments in Taiwan.

Increasing Flexibility in Business Operation

The new TCA amendments allow a private company to have only one or two directors, instead of requiring a board of directors with at least three directors. Prior to the TCA amendments, a private company was required set up a board of directors with at least three directors. To expand enterprise autonomy, a private company may now choose not to set up a board of directors but elect one or two directors, if provided in its articles of incorporation. If a company elects only one director, this director will serve as the chairman, and all provisions relating to boards of directors are not applicable to such company.

Private companies consisting of one legal entity shareholder are permitted to not have a supervisor. Provided that there are no other shareholders to be protected in a company consisting of single corporate shareholder, the amended TCA now allows such a company not to set up a supervisor.

Under the new amendments, a private company board is allowed to pass written resolutions. As long as the company's articles of incorporation allow it, its board may unanimously resolve matters of the board in writing without actually holding a board meeting.

The new amendments also allow a private company to convene a shareholders' meeting by video conference, if its articles of incorporation expressly provides for such. In this case, a company may freely regulate matters related to the registration and confirmation of shareholders' identities in the meeting.

Enhancing Corporate Transparency

To better implement antimoney laundering efforts, a company is now required to annually submit a shareholding report stating the statuses of directors, supervisors, officers, and shareholders owning more than 10 percent of its shares. The first submission is to be made by January 31, 2019. In addition, if there is any change in the shareholding status of any of the foregoing persons, a company is required to report such change within 15 days.

Creating a More Friendly Environment for Startups and Entrepreneurship

Previously, a company could distribute dividends only once a year upon ratification by shareholders at the annual general meeting. In order to better incentivize shareholders to invest, the amended TCA now allows a company to distribute dividends quarterly or semi-annually, provided that the estimated taxes, estimated remuneration, and legal reserve have been set aside. For the cash dividend distributions during the first three quarters or the first half of year, a resolution adopted by the board of directors will suffice, instead of needing a shareholders' resolution.

Additionally, under the new amendments, a company may now choose to issue shares either with or without par value.

The updated TCA also allows a private company to issue multiple classes of preferred shares, each carrying variations on voting rights, veto rights, or restrictions to be elected as a director or supervisor, as well as rights of certain seats to be elected as directors or share transfer restrictions.

Three Key Takeaways

  1. Amendments to the TCA to enhance the competitiveness of Taiwan's business environment passed by the Taiwanese legislature on July 6, 2018, came into effect on November 1, 2018.
  2. Generally, the TCA amendments were intended to increase flexibility in business operations, enhance corporate transparency, create a more friendly environment for startups and entrepreneurship, strengthen corporate governance, enhance shareholder protections, and conform to international trends.
  3. Among other requirements imposed by the TCA amendments, a new reporting requirement for Taiwanese companies to report on the shareholding statuses and other information of their directors, supervisors, officers, and shareholders owning more than 10 percent of its shares has its first submission due by January 31, 2019.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions