The National Development Council is preparing a draft amendment designed to overhaul the Companies Act.
The Legislature passed an amendment to the Companies Act last year allowing a class of companies called closed companies to issue no par and preferred stocks.
In Taiwan, closed companies are not publically listed, have fewer than 50 shareholders, and have charters that restrict the transfer of shares. Most closed companies are relatively new businesses, and the goal of last year’s amendment was to help the owners of these companies raise capital.
But the NDC says that the amendment doesn’t go far enough. It is preparing a draft amendment that would extend the right to issue no par and preferred stocks to ordinary unlisted companies. The NDC plans to submit its draft amendment to the Legislature by the end of the year, and hopes that the amendment will be approved next year.