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Laws & Regulations Database of The Republic of China (Taiwan)

Print Time:2024/05/21 22:40
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Chapter Law Content

Title: Medical Care Act CH
Category: Ministry of Health and Welfare(衛生福利部)
Chapter III Medical Juridical Persons in Medical Care
Section I General Provisions
Article 30
The establishment, organization, and management of medical care corporate shall be conducted in accordance with the provisions under the Act. Any matter not provided for in the Act shall be governed by the Civil Code.
Medical care corporations shall be established in accordance with the provisions under the Act. The organization, management, rights and obligations of the directors, bankruptcy, dissolution, and liquidation of medical corporations not provided for in the Act shall be governed by the Civil Code.
Article 31
Juridical persons in medical care may establish hospitals, clinics, and other medical care institutions. The number and scale of said establishments may be restricted as necessary.
The restrictions of number and scale of establishments as referred to in the preceding paragraph shall be determined by the central competent authority.
Juridical persons in medical care may establish the following subsidiary institutions with the approval of the central competent authority and the competent authority governing the related practice:
1. Nursing institutions, psychiatric rehabilitation institutions;
2. Medical research institutions;
3. Welfare institutions stipulated in accordance with the Law Governing Benefits for Senior Citizens and other welfare related laws.
The establishment criteria, procedure, and other observances of subsidiary institutions referred to in the preceding Paragraph shall be conducted in accordance with the provisions in related laws.
Article 32
Juridical persons in medical care shall have the necessary as sets to achieve the purpose of establishment.
The necessary assets referred to in the preceding Paragraph shall be determined by the central competent authority in accordance with the scope of establishment and conditions for operations.
Article 33
A juridical person in medical care shall establish a board of directors with one chairperson, who shall represent said juridical person.
A juridical person in medical care shall establish bylaws governing the organization and powers of the board of directors and supervisor, the qualification, selection and dismissal procedure for directors, chairperson, and supervisors, meeting and resolutions procedure, and other observances, which shall be submitted for approval to the central competent authority.
Article 34
Juridical persons in medical care shall establish an accounting system, adopting a fiscal year system and accrual system. The legal certificates of financial income and expenses shall conform to publicly-acknowledged accounting standards, and shall be kept on record.
Juridical persons in medical care should submit the annual financial report approved and recognized by the board of directors and supervisors to the central competent authority within five months after the end of the fiscal year.
The principles regarding the compilation of the financial report referred to in the preceding paragraph shall be determined by the central competent authority.
In addition to compliance with provisions stated above, accounting systems of juridical persons in medical care shall be conducted in accordance with related provisions of the Company Law.
The competent authority may order juridical persons in medical care to submit financial and operations reports, or inspect financial or operation situations at any time.
Juridical persons in medical care shall not avoid, obstruct, or refuse the order or inspection referred to in the preceding paragraph.
Article 35
Juridical persons in medical care shall not be unlimited liability shareholders of a company or a partner of a partnership enterprise. In the case that a juridical person in medical care is a limited liability shareholder of a company, the total investment and investment in a single company or the ratio of investment may not exceed a certain restriction.
The restrictions of investment referred to in the preceding Paragraph shall be determined by the central competent authority.
Surplus shares given to juridical persons in medical care by the invested company shall not be taken account into the total investment or investment amount referred to in the preceding Paragraph.
Article 36
The assets of juridical persons in medical care shall be registered or saved in the name of juridical person, and the use of which shall be supervised by the central competent authority.
Juridical persons shall not loan, rent out, create a right in rent over, change to the use of its real estate, or create a right in rent over its facilities, without authorization from the central competent authority.
Article 37
Juridical persons in medical care shall not be guarantors. The capital of juridical persons in medical care shall not be loaned to directors, members, other persons, or non-financial institutions. The assets of juridical persons in medical care shall not be guarantee for directors, members, or other persons.
Article 38
Personal contributions or contributions by organizations to medical care corporate shall be tax-deductible in accordance with related tax laws.
The deduction or exemption of income tax, land tax, or house tax for medical care corporate shall be conducted in accordance with the provisions of tax related laws.
Private medical care institutions established prior to the implementation of the amendment of the Act, which change to juridical person in medical care within three Years of implementation, and transfer original medical lands to juridical person in medical care for continued use without cost, shall be exempt from added value land tax. However, in the case the land is transferred again to a third party, added value land tax shall be collected according to the total added value from the original land value of previous or current transfer.
Article 39
Juridical persons in medical care may merge with other similar juridical persons in medical care under the approval of the central competent authority.
Juridical persons in medical care shall produce a financial statement and balance sheet, and notify obliges within two weeks of merging with the approval of the central competent authority. The provisions of Paragraph 2 of Article 73 and Paragraph 1of Article 74 of the Company Law shall apply mutatis mutandis.
The rights and obligations of juridical persons in medical care eliminated due to mergers shall be accepted in its entirety by the remaining or new medical juridical person.
Article 40
Non-medical care juridical persons may not use the names of, or similar to, medical juridical persons in medical care.
Article 41
The competent authority may reform, give a deadline to make improvements, cease all or part of clinical or hospital practices, order the suspension of practice, or revoke the license of juridical persons in medical care which are ill-conducted, or in violation of laws or original establishment criteria, in accordance with the seriousness of the situation.
In the case that juridical persons in medical care fail to conform to the provisions of Paragraph 2 of Article 32 due to decrease of assets, suspension or alteration of the established institution, or revocation of license, the central competent authority shall give a deadline to make improvements. Those who fail to comply shall be subject to revocation of license.
The central competent authority may annul the permit license of juridical persons in medical care which fall under the following conditions:
1. Those that have been approved for termination of practice, and fail to apply for resumption of practice within the given time limit.
2. Those that have been ordered to terminate all or part of clinical or hospitalization practices, and do not comply.
3. Those that have been ordered to terminate practice and do not comply, or fail to make improvements within the given time limit.
4. Those imposed with revocation of practice license.
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