Newsletter
INDEPENDENT DIRECTORS SHALL BE DISCHARGED ONCE COMPANY REVISES ARTICLES OF INCORPORATION OR CANCELS PUBLIC OFFERING
The Ministry of Economic Affairs cited an interpretation of the Financial Supervisory Commission on June 18, 2009 to indicate that the provisions governing independent directors and audit committee in the Securities and Exchange Act apply to public companies only. Therefore, when a company cancels its public offering, its independent directors shall be discharged. Furthermore, according to another interpretation issued by the FSC on June 23, 2009, when a company revises its articles of incorporation to remove the provisions regarding independent directors by shareholder's resolution, the elected and registered independent directors shall be discharged immediately to comply with the revised articles of incorporation if such revised articles of incorporation do not stipulate a date or condition concerning the application of the revision.