[Investment] Legal Reserve Can be Distributed in Cash

Draft amendment of Company Law was passed on July 2 by Executive Yuan. In future, legal reserve and capital reserve of a company shall be distributed in cash. While the portion of legal reserve which exceeds 25% of paid-up capital can be distributed in cash.

The draft amendment stipulates that the company without loss can distribute all or partial legal reserve and capital reserve in new shares or in cash based on shares holding ratio by shareholders.