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Corporate Service - Taiwan

Question

Taiwan Company- Increase of Capital

Answer
Q:
What types of increase of capital are?
A:
The common types of increase of capital are contribution capital, transfer of dividends and creditor’s rights.

Q:
What is the most common condition for increase of capital?
A:
For the demand of business or improvement of financial structure, company usually choose to increase the amount of capital?

Q:
Is it required to amend the article of association upon the increase of capital?
A:
According to “Company Act” and “Regulations Governing Company Registration”, the application of increase of capital shall be submitted to the competent authority after the amendment of article of association in 15 days, but if the basis date is set up additionally, such application shall be submitted to the competent authority based on the basis date otherwise. For those who fail to change the registration within the regulated term, the imposition of fine may be faced up from the competent authority.

Q:
Is there any requirement on increase of capital for company limited by shares?
A: In the condition of the total number of shares which are not issued totally, the increase of capital is not allowed.

Q:
How to increase the amount of capital for a company limited by shares?
A: The resolution of increase of capital shall at the meeting of shareholders shall be adopted by a majority of the shareholders present who represent two-thirds or more of the total number of its outstanding shares.

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