Newsletter
VOTING RIGHTS OF BANKRUPT SHAREHOLDERS
According to a Judicial Yuan interpretation dated 27 September 2006, although a company that is declared bankrupt loses the right to manage and dispose of its property, this does not mean that its title to such property ceases to exist. Before all of a bankrupt company's property has been dis-posed of or distributed, the company's legal personality remains. The Company Act's provi-sions regarding the dissolution of a company should apply under such circumstances by analogy. That is, to the extent required for the disposition of its property, the company should be regarded as not yet having been dissolved, so that it can still hold rights and be subject to ob-ligations. However, the property of a bankrupt entity should be managed and disposed of by a bankruptcy administrator.
Therefore, according to an interpretation issued by the Ministry of Economic Affairs on 3 Oc-tober 2006, if a bankruptcy administrator exer-cises the shareholder rights of a bankrupt com-pany by attending a shareholders' meeting of a company in which the bankrupt company holds shares, the bankrupt company's voting rights should be counted.