Cable Radio and Television Act Article 9

The organization of system operator shall be a company limited by shares.The number system operator’s directors with ROC nationality shall not less than two-third of the total number of directors. The same rule shall apply to the supervisors.The chairman of the system operator shall possess the ROC nationality.Total direct and indirect foreign investment in a company operating a cable radio and/or television system shall be less than 60 percent of the total shares issued by the company. Direct foreign shareholding is limited to legal entities; the total shares directly held by foreign shareholders shall not exceed 20 percent of the total shares issued.The indirect foreign investment stipulated in preceding Paragraph shall be computed by multiplying the percentage of shares or investment of the company operating a cable and/or radio system owned by domestic legal entities with the percentage of foreign shares of said domestic legal entities.System operator’s minimum paid-in capital shall be specified by the central regulatory agency.System operator or applicant of cable radio/television services engaged in Type I telecommunications business, wireless radio/television business or satellite radio/television business with restrictions on minimum paid-in capital shall have the minimum paid-in capital calculated separately according to the minimum paid-in capital of that business.System operator whose capital is above a certain amount shall submit its application of public offering to the securities regulatory authority.The amount defined in preceding Paragraph shall be announced by the central regulatory agency