School legal persons and their schools’ founders, board members, supervisors, liquidators, presidents, staff members and teachers holding concurrent administrative positions shall avoid conflicts of interest and are forbidden to abuse their power to make personal gains or those of a third party.
The legal person authority or school authority, prosecutors, school legal persons’ board members, supervisors or interested parties may request the court to order the return of above ill-gotten gains.

Foreigners or foreign legal persons approved by law may set up private senior high schools and above in the Republic of China in accordance with the Law.

Citizens of the Republic of China, foreigners, and foreign legal persons legally accredited to do so may set up private elementary schools, junior and senior high schools, and affiliated preschools in the Republic of China, exclusively for students with foreign nationality.
The private schools referred to in the preceding paragraph are not subject to the provisions of this Law or other laws governing educational institutions of all levels, but they are permitted to apply the provisions of this Law pertaining to supervision, merger, conversion, suspension of operations or closure, and liquidation. The affiliated preschools referred to in the preceding paragraph are not subject to the provisions of the Early Childhood Education and Care Act but they are permitted to apply the provisions pertaining to safety measures.
The Teachers Act is not applicable for teachers in the schools and preschools referred to in the first paragraph.
The regulations governing the eligibility, requirements, and procedure for applying to establish the schools and preschools referred to in the first paragraph, the establishment criteria, their supervision, ceasing admission of students, and other associated matters shall be prescribed by the Ministry.

Private senior high schools and under may set up departments or classes offering non-domestic courses and enrolling foreign students after being approved by the school authority.
Rules governing the above departments or classes including their establishment and enrolling of students shall be drawn up by the Ministry.

Taiwan nationals may set up private schools abroad including Hong Kong and Macau to provide their children with desired education. Rules governing these schools including their establishment, supervision, rewards and grants, and rights and obligations of the presidents, teachers, staff members and students shall be drawn up jointly by the Ministry and relevant supervisory authority.

Individuals, legal persons, groups, or other organizations from Taiwan given approval to invest or enter into technical cooperation activities in mainland China may set up private elementary schools, and junior and senior high schools there, catering exclusively for educating people from Taiwan, after applying to the Ministry for registration, and may also set up affiliated preschools.
The regulations for schools for Taiwan business people in mainland China governing their registration application procedure, curricula, facilities and equipment, admission and enrollment, awards and subsidy grants, students’ education after returning to Taiwan, the qualifications required by people from Taiwan to be appointed as principal, teachers, and other staff members, and their annual salary increments shall be drawn up jointly by the Ministry and the Mainland Affairs Council and submitted to the Executive Yuan for ratification.
If students at schools which comply with the regulations referred to in the previous paragraph return to Taiwan, their student records may be amalgamated with the student records they subsequently obtain at a school at the same educational level in Taiwan.
The provisions of the Government Employees and Teachers Insurance Act and the National Health Insurance Act governing private schools may also apply, mutatis mutandis, to insurance for people from Taiwan appointed as the principal, teachers, and other staff members of these schools for Taiwan business people in mainland China. If the personnel system of such a school is the same as that of schools in Taiwan offering the same level/s of education, the relevant provisions of this Law may also apply, mutatis mutandis, to the retirement, bereavement payment, and layoff with severance pay matters of their principal, teachers, and other staff members.

Private schools set up by a juridical person before the Law, amended on (date), went into force, with one juridical person establishing only one school, may continue to exist using the same organization and name. Their nature is the same as that of the school legal persons referred to by the Law, and they are subject to the amended provisions of the Law. Aspects of these schools not conforming to the Law shall be modified within three years after the Law goes into effect.
The above-said juridical persons and their private schools may convert into school legal persons and schools. Rules governing the conversion shall be drawn up by the Ministry.
If the above-said modifications necessitate amendment of the Rules, and a board meeting called to amend the Rules has been aborted three times in the three years mentioned above because less than two-thirds of the board members attended the meeting. If less than two-thirds of the board members, and at least half of them, is attending the fourth meeting, the resolution reached to amend the Rules shall be carried with the actual number of board members attending and over half of them voting for it, without being bound by the juridical person’s rules or the board’s organization rules.

Enforcement rules for the Law shall be drawn up by the Ministry.

The Law takes effect from the date it is announced.

This Law is made in Chinese, which shall prevail in case of any discrepancy between the English translation and the Chinese original.