The Executive Yuan completed the draft amendments to the Company Act on October 21, 2013. The draft amendments include 41 provisions, which are expected to be approved by the Executive Yuan in November and submitted to the Legislative Yuan for deliberation at the end of the year. Major draft amendments include:
- A public company may distribute their surplus earnings twice a year instead of once a year as required by current regulation; it is hoped that the additional distributions will foster a more lively stock market.
- For public companies, issuance of new shares that are reserved for subscription by employees of the company may be extended to employees of affiliated companies. Enterprises may thus provide better incentive for employees who are deployed in their affiliates.
- Nomination of directors and supervisors shall be publicly announced 10 days before the date on which share transfer registration is suspended. Such amendment would ensure that shareholders who vote through electronic means are aware of the nomination list in advance of the vote.
- Matters regarding capital reduction and application for ceasing the company’s status as a public company shall be disclosed in the notice to convene a meeting of shareholders, and shall not be brought up as extemporary motions.