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Law Name:Company with a certain amount of capital and a certain scaleCH


Promulgated on November 8, 2018

Law Content:

Purpose:To set the standard for "company with a certain amount of capital and a certain scale" in Paragraph 2, Article 20 of Company Act, which will become effective starting January 1, 2019.

Basis:Paragraph 2, Article 20 of Company Act

Announcement:
1.As used in Paragraph 2, Article 20 of Company Act, "a company's equity capital exceeds a certain amount" shall indicate a company, at the closing date of financial report period, with the amount of paid-in capital up to TWD 30 million or more. Financial statements of such companies shall be audited and attested by a certified public account prior to submission to shareholders for approval or to regular meeting of shareholders for ratification.
2.As used in Paragraph 2, Article 20 of Company Act, "a company's equity capital does not exceed a certain amount but the company is with a certain scale," shall indicate a company, at the closing date of financial report period, with the amount of paid-in capital less than TWD 30 million but fulfill either of the following conditions:
(1) Net revenue has reached TWD 100 million.
(2) The number of employees insured by Labor Insurance Program has reached 100.
3.Starting 2019 fiscal year, companies that meet conditions set forth above shall have their financial statements audited and attested by certified public accounts prior to submission to shareholders for approval or to regular meeting of shareholders for ratification.
4.In regard to companies not using calendar year as fiscal year, when the start date of financial report period falls in the year 2019, the fiscal year shall be cited as "2019 fiscal year" as set forth in preceding paragraph.
5.This announcement shall not apply to companies with shares publicly issued, which are subject to provisions otherwise provided for by the competent authority in charge of securities affairs.