Business Entity Fined for Multiple Violations of Company Act Requirements

A business entity in Taiwan has been fined NT$150,000 for violating several requirements under the Company Act.

Violations Found

• The company failed to register its scope of business accurately.
• It did not hold an annual shareholders’ meeting.
• Financial statements were not approved at the end of each fiscal year.
• The company did not report information relating to its owner/major shareholder annually.
• Accounting records were kept in a language other than Chinese, which is required by law.

Company Act Requirements

According to the Company Act, any company that conducts business in Taiwan must:

• Register with the relevant authorities
• Comply with various requirements, including:
  • Registering the scope of business
  • Holding an annual shareholders’ meeting
  • Approving financial statements
  • Reporting information relating to owners/major shareholders
  • Keeping accounting records in Chinese

Penalty for Non-Compliance

The penalty for violating these requirements can be severe, including fines ranging from NT$10,000 to NT$5,000,000.

Corrective Action and Monitoring

The company has been ordered to pay the fine and take corrective action to ensure compliance with the Company Act requirements. The authorities will also continue to monitor the company’s activities to ensure that it complies with all applicable laws and regulations.

Importance of Compliance

This incident serves as a reminder to businesses in Taiwan of the importance of complying with the Company Act requirements to avoid penalties and ensure the smooth operation of their operations.