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Civil Procedure
1. Amendment to the Code of Civil Procedure and Enforcement Act of the Code of Civil Procedure
On 16 June 2021, the President announced the amendment to the Code of Civil Procedure and Enforcement Act of the Code of Civil Procedure. We summarize below:
(1) Article 114-1 was newly added that if a child or teenager who was granted litigation aid has to bear the litigation fees after the conclusion of judgment or litigation procedure, he/she may apply with court for deduction or waiver of the litigation fees if the burden of litigation fees imposes significant impact on his/her livelihood. Article 4-7 of the Enforcement Act of the Code of Civil Procedure provides that if the ruling regarding the burden of litigation fees has been final and conclusive before the effectiveness of Article 114-1 of the Code of Civil Procedure, the person who was granted litigation aid may file the application within 3 months from the effectiveness of the Article.
(2) The wordings of "deaf/dumb person" in Article 207 is amended to "person with hearing, sound or language disability".
Reported by: David Tsai/ Paul Hsu
Administrative Litigation Act
2. Amendment to Administrative Litigation Act
The President announced an amendment to the Administrative Litigation Act on 16 June 2021. We summarize below:
(1) Parties may submit pleadings to the administrative court through technological devices. In addition, if the interested person in the litigation agrees, the pleading may be transmitted to the interested person through technological devices.
(2) If there are available technological audio-visual transmission devices between the administrative court and the place or the court where the parties or their representatives, administrators, assistants, witnesses, expert witnesses, and other interested persons are located, the case may be reviewed by the administrative court through such devices.
(3) Subject to the agreement of the person to be served, the authenticated copy of the judgment may be served to the person through an electronic document. However, in order to protect the right of person under the detention, the service of the authenticated copy of the judgment through an electronic document shall not apply. For the authenticated copy of the ruling to continue or extend the detention period, it may be served through an electronic document under the agreement of the person detained. The official in charge of the detention center shall print and deliver the document to the person detained.
Reported by: David Tsai / Lia Wang
Securities
3. Physical shareholders’ meeting with the assistance of video conference
On 29 June 2021, the Financial Supervisory Commission (FSC) issued a public announcement that in response to the pandemic, public companies may hold physical shareholders’ meetings with video conference on an ancillary basis during the period from 16 August 2021 to 31 August 2021 and shall comply with the following:
(1) Use the video conference platform provided by Taiwan Depository & Clearing Corporation.
(2) Shareholders participating through video conference shall register with the company in advance and agree to abstain from proposal and voting on provisional motions and amendments to proposal in the original agenda. They shall also agree to waive participation in the physical shareholders’ meeting.
(3) Shareholders exercising their voting rights by way of electronic voting are not allowed to participate in the shareholders’ meeting by video conference, but they can still attend and speak at the physical shareholders’ meeting.
(4) These public companies shall meet the following conditions:
(a) There shall be no proposal for election of directors and supervisors or there is a proposal for the election of directors and supervisors, but the number of candidates does not exceed the number of seats to be elected.
(b) There shall be no proposal for discharge of directors and supervisors.
(c) For companies that are neither listed on an exchange nor traded over the counter of securities firms shall be limited to those having engaged stock agents.
Reported by: Mike Lu / Amy Su
Company Act
4. Private companies to postpone shareholders meeting
The Ministry of Economic Affairs announced on 17 June 2021 that in order to prevent the spread of COVID-19, private companies may postpone the general shareholders meeting (which supposes to be held within 6 months from the end of each fiscal year) to 31 August 2021.
Reported by: Mike Lu / Angela Lin
Labor
5. Amendment to Act for Recruitment and Employment of Foreign Professionals
On 18 June 2021, the Legislative Yuan passed the amendment to the Act for Recruitment and Employment of Foreign Professionals. We summarize below.
(1) The scope of professionals is broadened, where national defense professionals and other professionals recognized by the competent authority are included.
(2) Graduates from top universities around the world may waive the requirement of having work experience for 2 years to apply to work in Taiwan.
(3) The Employment Gold Card may be extended upon application.
(4) Foreign professionals who enter Taiwan through visa-free treatment or visitor visa are no longer have to apply for resident visa and can apply for alien resident certificate directly.
(5) The annual staying in Taiwan period for foreign professionals to apply for permanent resident are changed from 183 days each year to 183 days in average.
(6) The required resident years for foreign special professions to apply for permanent resident are reduced from 5 years to 3 years.
(7) The tax preference treatment for foreign special professionals is extended from 3 years to 5 years.
Reported by: David Tsai / Alex Li
Promotion of Private Participation in Infrastructure Projects
6. Amendment to Enforcement Rules of Act for Promotion of Private Participation in Infrastructure Projects
On 16 June 2021, the Ministry of Finance announced the amendment to Article 9 of the Enforcement Rules of Act for Promotion of Private Participation in Infrastructure Projects, which provided that the bone ashes storage facilities established in the public cemetery area during the public cemetery renewal shall fall under the scope of the social welfare facilities stipulated in Subparagraph 5, Paragraph 1, Article 3 of the Act for Promotion of Private Participation in Infrastructure Projects.
Reported by: Alex Li
Funds
7. Amendment to Practice Guidelines for Prevention Measures of Short-term Trading for Offshore Fund Institution, Master Agent and Sales Agent
On 17 June 2021, the Securities Investment Trust and Consulting Association (SITCA) announced the amendment to Practice Guidelines for Prevention Measures of Short-term Trading for Offshore Fund Institution, Master Agent and Sales Agent. The major amendments are to require the master agent act as follows:
(1) Master agent must publicly announce the control measures of short-term trading provided in the prospectus on the short-term trading section of Fundclear and notify the sales agents accordingly;
(2) Where the prospectus does not provide the specific standard of short-term trading, the master agent must request the information from the offshore fund institution, and after obtaining the consent from offshore fund institution, publicly announce such information on the aforesaid platform. Where the master agent procure the information of the period of short-term trading, it must notify the sales agents of such period.
(3) Where the period of short-term trading is updated, the master agent must notify the sales agents in writing.
Reported by: Jeffrey Liu / Lia Wang
8. Guidelines for initiation of special circumstances described in the trust agreement for securities investment trust fund
On 21 June 2021, the FSC issued a ruling to stipulate that a securities investment trust enterprise (SITE) shall establish guidelines for initiation procedure of “special circumstances” (for deviation of pre-defined investment restriction) described in the trust agreement for securities investment trust fund (SIT Fund) in its internal control system. The guidelines shall include items below:
(1) Definition of initiation timing;
(2) Definition of conditions or timing of termination;
(3) Establishment of the implementation plan;
(4) Establishment of review procedures;
(5) Program execution and public announcement;
(6) Review report;
(7) Announcement after the end of special circumstances; and
(8) Preservation of relevant records and data.
Reported by: Jeffrey Liu / Lia Wang
Financial
9. Draft Amendment to Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises
The FSC announced the draft amendment to Article 25 of the ''Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises'', that a bank which conducts concurrently trust business shall include the contribution to the promotion of integrated business in combination with the trust system as consideration for the renumeration of trust business personnel. In addition, while handling the review and evaluation of relevant internal sectors, a reasonable evaluation shall be given based on the contribution mentioned as above.
Report by: Stacy Lo / Lily Huang
10. Amendment to Regulations Governing Declaration of Foreign Exchange Receipts and Disbursements or Transactions
On 29 June 2021, the Central Bank announced the amendment to the Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions (Regulations). We summarize below:
(1) To set forth the legal basis to determine the scope to include or not include in the declarant’s or principal’s aggregate foreign excnage settlement amount of the current year.
(2) To add (i) the definition for the term “electronic payment institution”, and (ii) the provisions relevant to banking enterprises in the Regulations shall apply mutatis mutandis to the declaration of foreign exchange settlement processed by electronic payment institutions.
(3) To add that the Central Bank may issue rulings to adjust the annual aggregate settlement amount and the annual aggregate settlement amount for specific remittance purchased or sold by the declarant depending on the economic and financial situation and the need to maintain the order of foreign exchange market.
(4) With evidencing documents confirmed by banking enterprises, the provision that an approval is required for a single remittance by a non-resident exceeding USD 100,000 shall not apply to the foreign exchange settlement declaration for remittance of the consideration for sale of the shares held by the original foreign shareholders of listed or Emerging Market registered foreign enterprises.
(5) The foreign exchange settlement declaration may not be processed until the banking enterprise has verified the required documents.
Reported by: Stacy Lo / Hazel Wei
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2021-07-07
