Taiwan’s Company Act is outdated and must be reformed to meet the requirements of modern company law. One example that illustrates the need for reform is that a company limited by shares is deemed to be a large-sized company, yet a limited-by-shares model can be used by small and medium-sized companies as well. This shows that the current Company Act has been unduly burdensome for small and medium-sized enterprises.
In addition, the defects of corporate governance must be improved. This article suggests that Taiwan introduce the systems of director disqualification and company secretary. Apart from this, directors’ fiduciary duties must be modified and the control of related-parties’ transactions needs to be strengthened.