Act for Investment by Overseas Compatriots Article 16

Where an invested enterprise is organized as a company under the Company Act, the investor thereof may be exempt from the restrictions on the investor’s domicile in the ROC and on the amount of capital contributions under paragraph 1 of Article 98, paragraph 2 of Article 108, paragraph 1 of Article 128, paragraph 5 of Article 208, and paragraph 1 of Article 216 of the Company Law.The provisions of paragraph 4 of Article 156 of the Company Act requiring issuance of stock certificates to the public, and the provisions of Article 267 of the same Law requiring setting aside a certain percentage of new shares (issued as a result of capital increase by cash) for subscription by employees of the invested enterprise shall not apply to an investor’s investment if such investment accounts for 45% or more of the total capital of the enterprise in which the investor invests.If the investor’s investment is made in conjunction with a foreign national who makes the investment under the Act for Investment by Foreign Nationals, and if their aggregate investment amount accounts for 45% or more of the total capital amount of the invested enterprise, the provisions referred to in the preceding paragraph shall, mutatis mutandis, apply thereto.