Private School Act Article 50

To enhance teaching effect and financial resources, private schools established by school legal persons may set up teaching-, practical training-, experiment-, research- and promotion-oriented affiliates after drawing up rules governing the affiliates and obtaining approval from the competent authority of schools and relevant industry authorities. The same applies to teaching-, practical training-, experiment-, research- and promotion-oriented undertakings in which they invest alone, or in cooperation with the government, businesses, or individuals.Finances of the affiliates shall be separated from those of the schools. Their surpluses shall be used to employ teachers, purchase equipment and boost the school fund. Unless otherwise stipulated by law or approved by the competent authority of schools, the surpluses shall not be diverted to specific individuals in any way. The property that remains on the closure of said affiliates belongs to the school legal persons.Handling of the affiliates and related undertakings in accordance with the provisions of the preceding paragraph shall not affect normal operation of the school, whose operation and finances shall still be under the supervision of the school legal persons.