Amendment : Dismissal of the Chairperson; Taxation : Online Shopping; Digital Communication Act.
Updated: Sep 21, 2022
Amendment : Dismissal of the Chairperson of the Board shall not be Conducted via Extempore Motion
Financial Supervisory Committee has published the draft of the amendment of “Regulations Governing Procedure for Board of Directors Meetings of Public Companies” on May 12, 2022, regulating that the important issue shall not be raised by extempore motion. In the recent years, there are a lot of disputes of ownership of the public listed companies that the issues of dismissal of the old chairperson of the board and election of the new one have been raised via extempore motion. Afterward, Ministry of Economic Affairs has rejected such changing registration based on the reason that “there was no urgent situation or other fair reason to do so”.
Therefore, Financial Supervisory Committee has made this draft of amendment to regulate that the important issues of the board must be written clearly on the meeting notice, but cannot be raised via extempore motion. Source : Law Bank website
Taxation : Online Shopping shall be Governed by Commodity Labeling Act.
Taiwan Legislation Yuan has passed the amendment of “Commodity Labeling Act”, regulating that online shopping shall be governed by Commodity Labeling Act.
According to article 13 of Commodity Labeling Act, “The local authority shall be entitled to conduct a spot check, on a non-periodical basis, on any commodity circulating on the market, to which spot check the sales business operators shall not evade, impede or otherwise repudiate, and instead they shall provide the relevant information pertaining to the supplier(s) of such commodity.” Due to the prosperity of online shopping, the amendment regulates that the online shopping business shall also be liable for providing relevant documents for the check by local authority. If the online shopping business fails to do so, it may be imposed with a fine of an amount not less than NTD 20,000 but not more than NTD 200,000, and this fine may be assessed consecutively on a time-by-time basis until there is a satisfactory correction of such default. Source : Law Bank website
Communication : Advocate for the Draft of Digital Communication Act
Draft of Digital Communication Act (“the Draft”) was announced by National Communications Commission (“NCC”) last December. The purpose of the Draft is to tackle the rising issues of Internet fraud, of spreading misinformation and to deal with other problems of using internet, in order to have a better internet governance. The Draft has not been finalized yet, and is to be published and implemented, as NCC still needs to work on the details of implementation, especially on some sections , that may be related to different authorities’ competences. The Draft is under discussion now. Nevertheless, the direction of the Draft shall be clear, service provider of digital communication (“the Service provider”) should be subject to the Draft. Pursuant to the Draft, the Service provider refers to a natural person, a business partnership, a legal entity or a group who provide digital communication service to public or others per use. The Service Provider shall provide feasible services and provide the management ot the provided services. Meanwhile, the service Provider shall take care of the matter of information disclosure, privacy issue, personal data collection and so on. In the Draft, clauses are prescribed to exclude the liabilities of Service provider under certain circumstances, such as : the infringement is not initiated from the Service provider, or the Service does not change users’ information. The Draft also indicates that the authority shall encourage the offshore digital service provider to set up branch office or have an agent, and have a tax registration in Taiwan. The offshore service shall pay a close attention regarding this section in the near future when Digital Communication Act will be released and implemented.
Source : NCC Website