Newsletter
CAPITALIZED TECHNOLOGY CONTRIBUTION BY FOREIGN AND OVERSEAS CHINESE INVESTORS SUBJECT TO REVIEW
On 6 May, 1999, the Ministry of Economic Affairs (MOEA) announced that the contribution of technology as capital investment by foreign and overseas Chinese investors must be approved by the MOEA's Investment Commission before the filing for company registration. This requirement is intended to streamline procedures and benefit investors by eliminating duplication of examination and approval procedures. Foreign and overseas Chinese investors will not be required to file expert reports verifying the value of the technology when establishing companies or registering to issue new shares.
In addition, companies planning to issue new shares based on contribution of technology must submit supervisors' opinion to the competent authority for approval according to the Company Law. Moreover, capital raised from the public based on technology contributed must be investigated and reported by the board of directors and supervisors (or auditors) according to the Company Law.