The establishment of a supervisor is a necessary supervisory and self-manageable unit for Taiwan company limited by shares pursuant to Company Act and aims to oversee the overall business operation and examination of accounting. The definition of “Supervise” is not only limited to hold the rights to oversee the businesses operated by directors, but also hold the rights to examine the accounting records of company. To meet the demand of such unit, the supervisor is able to execute its power and privilege to avoid any suspicious cheating events.
According to the article 222 in Company Act, due to the engagement relationship with company, the supervisor is not allowed to act as director, managerial officer and employee at the same company. In addition, the supervisor also cannot apply for Taiwan labor insurance and withholding the pension. In the circumstance that the supervisor acts as director and managerial officer simultaneously, such supervisor would be disqualified and dismissed, but the position of director and managerial officer is still remained. If the application of labor insurance is submitted with the identity of director and managerial officer, such application is legal and couldn’t be rejected without justification by Bureau of Labor Insurance.
Upon the judicial side, in the condition that the supervisor in the identity of labor at the same time, the employee contract can be remained which would be ruled by the court if the supervisor has indeed been undertaking the works of labor to receive the wages during the term of office accordingly.
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In Taiwan, companies can be categorized into three types: limited company, limited company by shares and foreign branch office. According to Taiwan’s Company Act, when establishing a company, the founders (shareholders) must hold a meeting to determine the company’s capital amount.
A Taiwan limited company by shares is required to appoint at least one supervisor to oversee and conduct audits of the company’s operations. The primary purpose of supervisor role is to serve as a check against the board of directors, ensuring that the rights of general shareholders are not infringed upon and that directors do not abuse their powers for personal gain.
No matter foreigners or Taiwanese to be the responsible person of Taiwan company, the tax regulations will be varied as different as the country of tax residents.Residency and holding the household registration in Taiwan within 1 to 31 days (with Taiwan labour insurance, health insurance, national pension, or spouse and children in Taiwan).
To comply with the Anti-money laundering policies, Taiwan companies shall declare the shareholding information which shareholders holding the shares more than 10% on the shareholder declaration platform affiliated with TDCC (Taiwan Depository & Clearing Corporation) on March 1st to 31st annually.
