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Council considers Company Act changes

The Council for Economic Planning and Development yesterday mulled amending the Company Act (公司法) in the wake of the Rebar Asia Pacific Group (力霸亞太企業集團) scandal.

The proposal was presented to a regular meeting of the Cabinet yesterday and focused on how to strengthen the alert system, financial supervision and corporate governance in enterprises.

The proposed amendments to the law included the forbidding of any person holding from positions as a board member and a supervisor simultaneously within a company, tightening company registration procedures and revising the rules governing the removal of board members, supervisors and executives after they have been proven to have been involved in wrongdoing.

Minister of Economic Affairs Steve Chen (陳瑞隆) said that the ministry would be inviting experts and academics to discuss the amendment, but he did not give any timeframe.

The law was last amended in February last year.

To reduce the possibility of future financial scandals similar to that which struck Rebar, the Cabinet is also considering whether to establish an inter-ministerial mechanism to monitor the operation of corporations and conglomerates, Chen said.

Both the finance and economics ministries would provide personnel to participate in the special task force, he said.
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