Approval of an arbitration institution’s establishment shall be subject to whether the establishment is beneficial to the overall economics and public benefit and whether the arbitration institution meets the following requirements:
(1) Members reach 30 or more;
(2) Employment of 3 or more full-time personnel who have earned law degree from a public or a registered private college or above or an overseas college or above recognized by the Ministry of Education or passed the civil service examinations for legal affairs;
(3) The space of its office or place of business is 70 pings (231.406㎡) or more, and, if it is leased, there shall be a notarized lease agreement with at least 2-year term;
(4) Sufficient funds for establishment (including the funds for purchase or lease of land, building and equipment) and annual current expenses necessary for maintaining basic operation;
(5) Independent accounting and internal audit system; and
(6) Cash of New Taiwan Dollars (“NTD”) 10,000,000 or more.

Within 3 months beginning with the day that the arbitration institution completes its establishment registration, the land and building, funds and cash respectively set out in subparagraph(3), (4) and (6) of the preceding Article shall be registered under the arbitration institution’s name or deposited in its own account and reported to the MOI and the MOJ for records.
For the property set out in the preceding paragraph, if it is real property, an arbitration institution shall not dispose, rent out, mortgage or change of use; if it is cash, an arbitration institution shall not deposit or loan to individuals or non-financial institution without a resolution passed by the board of directors and approved by the MOI and the MOJ.

An arbitration institution shall be in the same area where the competent authority is located unless otherwise approved by the competent authority.
An arbitration institution may set up a representative office upon approval of the competent authority.

An arbitration institution solely or jointly established by any professional organization of any level may handle arbitration matters relevant to the profession; if solely or jointly established by any social organization of any level, an arbitration institution may handle arbitration matters relevant to its respective business.
To establish an arbitration institution, it shall be for the professional or social organization solely or jointly applying for the establishment to submit to the MOI the application form, each participating organization’s registration certificate, the arbitration institution’s member roster, draft charter of association, founding members roster and draft ethical rules of arbitrators and relevant evidencing documents set out in Article 4; an approval will be granted only after obtaining the consent of the MOJ which shall have consulted each regulatory authority of respective business.

To establish an arbitration institution, it shall be for the professional or social organization that solely or jointly applying for the establishment to submit to the MOI the application form, each participating organization’s registration certificate, the arbitration institution’s member roster, draft charter of association, founding members roster and draft ethical rules of arbitrators and relevant evidencing documents set out in Article 4; an approval will be granted only after obtaining the consent of the MOJ which shall have consulted each regulatory authority of respective business.

To establish an arbitration institution, it shall be for the organization that solely or jointly applying for the establishment to submit to the MOI the application form, each participating organization’s registration certificate, the arbitration institution’s member roster, draft charter of association, founding members roster and draft ethical rules of arbitrators and relevant evidencing documents set out in Article 4; an approval will be granted only after obtaining the consent of the MOJ which shall have consulted each regulatory authority of respective business.

An arbitration institutions’ charter of association shall include the following:
(1) Title;
(2) Purpose;
(3) Area;
(4) Location;
(5) Organization;
(6) Scope of arbitration matters handled;
(7) Members’ qualification, procedures of admission and withdrawal;
(8) Members’ rights and obligations;
(9) Admission fee and annual membership fee, including the amount and levels;
(10) Number of member representatives and criteria for their appointments;
(11) Number, duty, term, election and removal of directors and supervisors;
(12) Meeting;
(13) Funding and accounting; and
(14) Requirement and procedure for cancellation of an arbitrator’s registration.
(15) Procedures for the formulation and amendment of charter of association.
(16) The date of the charter of association be formulated or amended.
Amendment of the charter of association shall be submitted for approval pursuant to the procedure set out in the preceding Article.

The professional or social organization solely or jointly establishing an arbitration institution and their respective members may be the members of the arbitration institution.
The member referred to in the preceding paragraph shall be limited to industrial, commercial, agricultural, forestry, fishing, animal husbandry and mining enterprises operated by public or private interests and organized in the form of company, sole proprietorship, partnership, institution or organization.
A member of an arbitration institution shall pay the membership fee pursuant to the level at the member’s election.
A member referred to in the preceding paragraph may appoint 1 to 5 representatives and the number of which shall be determined pursuant to the membership level. Any member representative shall enjoy the same rights to vote, to elect and to be elected.

An arbitration institution shall have a board of directors consisting 9 to 31 directors and a board of supervisors consisting 3 to 9 supervisors; such directors and supervisors shall be elected from the member representatives. The number of alternate directors and supervisors shall not exceed one-third of the number of directors and supervisors respectively.
Standing directors and standing supervisors shall be respectively elected from the directors and supervisors referred to in the preceding paragraph provided that the number of which shall not exceed one-third of the respective number of directors and supervisors. The chairperson of the board of directors shall be elected by the directors from the standing directors and who shall be the convener of the meetings of the general assembly and the board of directors; the standing supervisors shall elect one from themselves as the convener of the board of supervisors meeting if there are 3 or more standing supervisors.
An arbitration institution shall report the election result set out in the preceding two paragraphs to the MOI and the MOJ for records within 15 days beginning with the day of election.

Directors and supervisors of an arbitration institution shall not be remunerated; the tenure of which shall not exceed 4 years and they may be re-elected provided that the chairperson of the board of directors may be re-elected once only.

The general assembly of an arbitration institution shall be convened annually; the board of directors and the board of supervisors shall meet separately or jointly every 3 months. Extraordinary meetings may be convened at any time if necessary.

A general assembly’s resolution shall be adopted by a majority of the attending member representatives who represent more than one-half of the total number of member representatives. A resolution in connection with removal of directors or supervisors or disposal of material property shall be adopted by at least two-third of the attending member representatives who represent more than one-half of the total number of member representatives; the amendment of charter of association shall follow the procedures in connection with the amendment of charter of association under the Civil Code.
A resolution of a board of directors or a board of supervisors shall be adopted respectively by a majority of the attending directors or supervisors who represent more than one-half of the total number of directors or supervisors unless otherwise specified.

If any of the following circumstances occurs to an arbitration institution, the competent authority or the regulatory authority of the respective business may order the arbitration institution to make a correction within a specified time period; failing which, the competent authority may revoke or rescind the arbitration institution’s approval and notify the court of registration:
(1) Violation of laws, the charter of association or the conditions on its establishment approval;
(2) Guideline for management, or management or operation does not conform to the establishment purpose;
(3) Failure to obtain legal vouchers of financial revenue and expenditure or keep complete accounting records;
(4) Concealing property or obstructing the competent authority or the regulatory authority of the respective business from conducting inspection;
(5) Giving false report on operation or financial status;
(6) Ceasing operation up to 2 years or more;
(7) Other violation of the Regulations.

The residual assets of an arbitration institution after its dissolution shall be distributed in accordance with the charter of association or the resolutions passed by the general assembly provided that no such residual assets shall be distributed to any individual or profit-seeking organization.
If the distribution of residual assets is not specified in the charter of association or the generally assembly is unable to pass any resolution pursuant to the preceding paragraph, the residual assets shall be distributed to the municipality or county (city) where the arbitration institution is located.