Company Act Article 266Aug. 1, 2018

The provisions contained in this section shall govern the issue of new shares by installments under Article 156, Paragraph Four.

The issue of new shares of a company shall be determined by the Board of Directors by a resolution adopted by a majority vote at a meeting attended by over two-thirds of the directors.

The provisions of Article 141 and Article 142 shall apply mutatis mutandis to the issue of new shares.

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Other Related Laws

Company Act Article 141Aug. 1, 2018

When the total number of shares in the first issue has been subscribed to in full, the promoters shall immediately press each of the subscribers for payment. Where share certificates are issued above the par value thereof, the amount in excess of such value shall be collected at the same time with the payment for shares.

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Company Act Article 142Aug. 1, 2018

Where subscriber delays payment for shares as provided in the preceding article, the promoters shall fix a period of not less than one month and call upon each subscriber to pay up, declaring that in case of default of payment within the stipulated period their right shall be forfeited.

After the promoters have made the aforesaid call, the subscribers who fail to pay accordingly shall forfeit their rights and the shares subscribed to by them shall be otherwise sold.

Under the aforesaid circumstances, compensation for loss or damage, if any, may still be claimed against such defaulting subscribers.

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Company Act Article 156Aug. 1, 2018

The capital of a company limited by shares shall be divided into shares, and a company shall choose either par value or no par value shares when issuing shares.

For a company issuing par value shares, each share shall have the same par value; for a company issuing no par value shares, the payment for such no par value shares shall be fully set aside as equity capital.

A portion of the shares may be designated as special shares, with the kind of such special shares to be specified in the Articles of Incorporation.

The total number of shares as specified in the Articles of Incorporation may be issued in installments; for shares to be issued at the same time and under the same conditions of issuance, the issuance price thereof shall be the same. The method to determine the issuance price for a public company may be prescribed by the competent authority in charge of securities affairs.

Equity capital to be contributed other than cash by shareholders may be in the form of monetary credit extended to the company, or the property or technical know-how required by the company, provided, however, that the amount of such substitutive capital contribution shall require a prior approval of the board of directors.

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