Company Fined for Violating Law and Regulation
Company Fails to Identify Business Category Correctly
A local company has been slapped with a fine of NT$15,000 for violating the Company Act. The company failed to identify its business category correctly when registering with the authorities.
According to Article 18 of the Company Act, any company must identify its business category when making registration, using the Category Code assigned by the central competent authority. The company in question had registered with descriptive words instead of the applicable Category Code.
- Responsible person will be fined NT$1,500 and at most NT$15,000 for the offense.
- If the issue is not resolved after a notice period, the registration of the company will be revoked.
Board of Directors’ Meeting Not Held Annually
Another local company has been found to have failed to hold an annual meeting of its board of directors, violating Article 204 of the Company Act.
The law requires that each director and supervisor be given notice of a meeting at least three days prior to the scheduled date. However, in this case, no notice was given to the directors and supervisors, and the company failed to provide a report on its financial situation.
- Fine for this offense is NT$10,000 and at most NT$50,000.
Company Fails to Comply with Audit Requirements
A local profit-making enterprise has been fined NT$20,000 for failing to comply with audit requirements under the Company Act.
According to Article 20 of the law, companies with equity capital exceeding a prescribed amount or reaching a certain scale must have their financial statements audited and certified by a certified public accountant. The company in question failed to meet this requirement.
- Fine will be doubled to NT$40,000 if the offense is not rectified after a notice period.
Other Violations
In addition to these offenses, other violations were also found during an inspection of the company’s records and accounts:
- Failure to report information relating to business owners or major shareholders: NT$50,000 and at most NT$5,000,000
- Failure to keep accounting records in Taiwan: NT$30,000 and at most NT$150,000
- Failure to keep accounting records in the Chinese language: NT$10,000 and at most NT$50,000
The company has been given a deadline to rectify these offenses and avoid further penalties.