472
[ESTABLISHING A BUSINESS ENTITY IN TAIWAN]
a. business report; b. financial statements; and c. proposal for earnings distribution or making up losses. If a company has paid-in capital of NT$30,000,000 or more, net operating revenues of NT$100,000,000 or more, or hires one hundred or more employees with labor insurance coverage, its financial statements must be audited and certified by a CPA. If no objection is raised by any shareholder within one month, the statements and records shall be deemed to have been approved by all shareholders. Annual reporting A company shall report annually the names, nationalities, birthdays, or the dates of its incorporation registration, identification numbers, capital contribution, and other items as required by the central competent authority of its directors, supervisors, managerial officers, and shareholders holding more than 10% of the paid-in capital of the company to the information platform established or designated by the central competent authority by way of electronic transmission. If there is any change to the above items, the company shall, within 15 days after such date of change, report such change to the information platform.
single corporate shareholder may have one or two directors in lieu of a board of directors, if so specified in its articles of incorporation, but it must have at least one supervisor. A company with a board of directors must elect a chairman of the board and may also elect managing directors, if the number of directors is more than nine, and the company may delegate certain functions to the board of managing directors. If a company so wishes, a vice chairman of the board may also be elected from among the directors at the board meeting. Financial audit At the end of each fiscal year, the board of directors shall prepare the following statements and records and shall forward the same to supervisors for their verification not later than 30 days prior to the date of a general meeting of shareholders: a. business report; b. financial statements; and c. proposal for earnings distribution or make-up losses. The CPA audit requirement for limited companies as mentioned above also applies to a company limited by shares. The board of directors shall submit such financial statements and records to the general meeting of shareholders for recognition. Once the documents are recognized, copies of recognized financial statements and the resolutions on the proposal for earnings distribution or making up losses shall be distributed to each shareholder. Shareholders' meeting Only companies with more than one shareholder have shareholders' meetings; in the case of single-shareholder companies,
Company limited by shares Directors and supervisor(s)
A company limited by shares shall have at least three directors to form its board of directors and one supervisor. A company owned by a single corporate shareholder may have no supervisor and have one or two directors in lieu of the board of directors. A non-public company that is not owned by a
ILN Corporate Group – Establishing a Business Entity Series
Made with FlippingBook Ebook Creator