The cessation of operations of a national junior college or institution of higher education and/or any branch campus, division, junior college division, or skills-based senior high school division shall be reviewed by the MOE in line with education policies and examining and considering the specific circumstances of the particular institution before it approves any such cessation.
The cessation of operations of a municipal, county, or city junior college or institution of higher education and/or any branch campus, division, junior college division, or skills-based senior high school division shall be reported by the government at each respective level for ratification.

If any one of the circumstances listed below apply to a junior college, the MOE shall order the junior college to improve the situation within a prescribed period; if the improvements made within the prescribed period have had no effective result, the MOE may order the junior college to cease its operations, in accordance with the provisions of Article 7, Paragraph 3 of the Junior College Law:
1. If the total number of students is less than 1,800, and the new student registration rate is less than forty percent in the two most recent years.
2. If a rating of tier four or lower was achieved in the vocational and technological college and university accreditations for two consecutive occasions (not passing), or if a rating of tier four was achieved in the most recent program accreditation (none of the programs passed).
3. If three or more major administrative errors or negligence were recorded by the MOE for two consecutive academic years, or if three or more major administrative errors or negligence were recorded by the MOE within the same academic year.
4. If its finances can no longer cover operating expenses or if the educational institution is in financial difficulties.
To review the cessation of operations referred to in the previous paragraph, the MOE may handle matters in accordance with the provisions of Article 3 after forming an expert assessment panel to conduct an on-site inspection and assessment.

When a school endowment corporation acting in accordance with the provisions of Article 70, Paragraph 1 of the Private School Law applies to cease operating a private educational institution that it has established, or its branch campus, division, or junior college division, skills-based senior high school division, it shall draw up a cessation of operations plan, submit a report to the university council or junior college governing board, and after the plan has been passed by the board of directors, submit the cessation of operations to the competent authority for that private educational institution for ratification.
If a private junior college or institution of higher education has been ordered by its competent authority to cease operations in accordance with the provisions of Article 70, Paragraph 2 of the Private School Law or the provisions of Article 7, Paragraph 3 of the Junior College Law, the board of directors of its school endowment corporation shall draw up a cessation of operations plan and submit it to the competent authority for approval.
A cessation of operations plan shall give explicit details of the following:
1. The reason for cessation of operations.
2. Basic information about the educational institution.
3. Plans for the disposal of the facilities and equipment, files and documents, and property and assets.
4. Plans regarding the resignation, retirement, and discharge with severance pay of current teaching and other staff.
5. Plans for the teaching of current students and counselling to assist students transfer to another educational institution.
6. Plans for the clearance of any debts or liabilities of the educational institution and for the disposal of any government grants or subsidies, and income the educational institution received for providing administrative oversight of various activities.
7. The school endowment corporation’s follow-up plan in the event of cessation of the operations of a junior college or institution of higher education it has established.
8. Plans for other matters pertaining to cessation of operations.

When a junior college or an institution of higher education's branch campus, division, junior college division, or skills-based senior high school division ceases operating, its student records, personnel files, account books and vouchers, and other associated materials shall be properly retained by the parent institution.
When a junior college or an institution of higher education ceases operating, it shall immediately collect and properly organize all of its student records, personnel files, account books and vouchers, and any other material designated by the competent authority in charge of the junior college or institution of higher education; a private junior college or institution of higher education shall turn such items over to its school endowment corporation or to an organization (agency) designated by its competent authority for safekeeping, and these shall be returned at such time as it resumes operations; in the case of a public junior college or institution of higher education, such items shall be properly retained in accordance with the provisions of the Archives Act and the relevant regulations of each level of government.
If a private junior college or institution of higher education ceases to exist as the result of an amalgamation, all of its student records, personnel files, account books and vouchers, and other associated material shall be properly retained after the amalgamation by the newly-established or surviving private junior college or institution of higher education.

When a private junior college or institution of higher education ceases operating, its school endowment corporation shall undertake the resettlement and retirement of the teaching and other staff in accordance with the Teacher’s Act, the Act Governing the Retirement, Bereavement Compensation, Discharge with Severance Pay Benefits for the Teaching and Other Staff of School Legal Persons and Their Respective Private School(s), and related ordinances, and its cessation of operations plan.
The resettlement of current students shall be undertaken in accordance with the provisions of Article 76 of the Private School Law; the competent authority for the junior college or institution of higher education that is ceasing operations may consider how factors such as its location, and range of departments correspond to those offered by other private junior colleges or institutions of higher education to help the students transfer to another suitable private institution.

A private junior college or institution of higher education or any branch campus, division, junior college division, or skills-based senior high school division that ceases operating may resume operations after applying to the MOE and obtaining approval to do so; the provisions pertaining to establishment in these Regulations apply, mutatis mutandis, to the procedures for doing so.
If a school endowment corporation is no longer operating any private educational institution because any private educational institution it had previously established has ceased operating or been amalgamated with another and the school endowment corporation has not established any other private educational institution, it shall, within three years from the date that the cessation of operations or amalgamation became effective after approval was given, have fully resumed the operations of its previous private educational institution(s), established a new private educational institution, amalgamated with another school endowment corporation, or, in accordance with Article 71 of the Private School Law, have completed becoming a foundation that engages in other educational, cultural, or social welfare activities. If the school endowment corporation fails to complete some such action within the prescribed period, the competent authority for the school endowment corporation shall order the situation to be handled in accordance with the provisions of Article 72 of the Private School Law. If a former school endowment corporation has completed becoming a foundation that engages in other educational, cultural, or social welfare activities, it shall continue to retain related documents and material; if a school endowment corporation is dissolved, it shall seal all related documents and material for safe keeping and shall report to the competent authority in charge of its former educational institution, which shall coordinate the checking of those documents and material and the method of their safe keeping.
If a school endowment corporation was no longer operating any private educational institution when these Regulations took effect on January 6, 2017 because any private educational institution it had previously established had ceased operating or been amalgamated with another and the school endowment corporation has not established any other private educational institution, it shall within three years of the amendments to these Regulations taking effect, have fully resumed the operations of its previous private educational institution(s), established a new one, amalgamated with another school endowment corporation, or, in accordance with Article 71 of the Private School Law, have completed becoming a foundation that engages in other educational, cultural, or social welfare activities. If the school endowment corporation fails to complete some such action within the prescribed period, the competent authority for the school endowment corporation shall order the situation to be handled in accordance with the provisions of Article 72 of the Private School Law.

When a branch campus, division, or junior college division that a university has established overseas ceases operating, except when the ordinances of the country or district where it is located dictate otherwise, ownership of any residual equity shall return to its parent university in the ROC.