Recognising the need to enhance Taiwan’s business environment to stay competitive in the global market, the Tsai administration has enacted a series of ambitious policy changes and legal amendments aimed at stimulating innovation and growth. Most fundamental to these goals are the sweeping changes made to the Company Act that were promulgated into law on August 1.
BACKGROUND & DETAILS
On 6 July 2018, Taiwan’s legislature enacted 148 amendments to the Company Act. Important changes and reforms have been made to boost corporate governance, international visibility as well as legal flexibility. Given a push to the Cabinet and financial authorities from the President to give the entrepreneurship and innovation sector more leeway when reviewing applications, the Ministry of Economic Affairs’ Small and Medium Enterprise Administration has developed a regulatory sandbox mechanism to allow innovative start-ups to pilot new business models. The Company Act which previously defines a company solely as a profit-seeking business has amended to include social welfare and altruistic organisations. The amended Company Act is a step taken towards fostering a more conducive legal and policy environment for social enterprises.
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For further information on Taiwan’s amended Company Act, hear the main takeaways from an AVPN webinar on strengthening the B Corp movement through legislation!
How does the Taiwan Small and Medium Enterprise Guarantee Fund aid social enterprises and support enterprise innovation? Learn more at at APFx Policy Lab: Driving Knowledge and Experience Towards Action and hear directly from Ray Chen of B Current Impact Investments on the Taiwan Social Enterprise Loan Scheme, a cross-sector collaborative scheme to increase financing for social enterprises in Taiwan.