According to the Ministry of Economic Affairs (MOEA), the amended Company Act will prohibit legal persons from serving as both a director and supervisor of a company at the same time. It will also require stricter government review of proposed corporate charters.

Other clauses address the private placement of corporate bonds and the compulsory resignation of directors,supervisors and managers, MOEA officials said.

Chen said the MOEA will invite academic and business persons to give their opinions during the bill drafting processes.

In addition to amending the law, Chen said the government will also reinforce supervision and management of business conglomerates, which he said have developed special operating patterns in Taiwan.

The MOEA, the Council for Economic Planning and Development and the Financial Supervisory Commission will form a joint panel to deal with conglomerate issues, he said.

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