Taiwan Company Faces Penalties for Violations of Company Act Requirements

A prominent Taiwan-based company, [Company Name], owned by [Owner’s Name], has been found to have violated several requirements of the Company Act, according to a recent investigation by the relevant authorities.

Serious Violations Uncovered

The investigation revealed that the company had failed to update its registered scope of business to reflect changes in its current operations. This serious violation carries a penalty of up to NT$15,000 for each responsible person involved.

Additionally, the company did not hold its annual shareholders’ meeting within the required timeframe, resulting in a penalty of up to NT$50,000. Furthermore, the financial statements submitted by the company were not approved at the end of each fiscal year, incurring an additional fine of up to NT$50,000 for each board member responsible.

Multiple Violations Discovered

The investigation also uncovered that the company:

• Failed to submit its annual report on major shareholders and directors, as required by law. This violation carries a penalty of up to NT$5 million.
• Did not maintain its accounting records in Taiwan, as required by law.
• Kept these records in a language other than Chinese, which is mandatory for business transactions. These violations incur penalties ranging from NT$30,000 to NT$150,000.

Company Ordered to Rectify Violations

The company has been ordered to rectify all these violations within a specified timeframe and faces further penalties if it fails to comply.

Importance of Compliance

This incident serves as a reminder of the importance of compliance with Company Act requirements in Taiwan. Failure to do so can result in significant financial penalties and damage to a company’s reputation.

Update: The company has issued a statement apologizing for the violations and committing to rectify them promptly. It is unclear at this time whether any further action will be taken against the company or its responsible individuals.