The term “Company in Taiwan” as used in this Act denotes the following company:
1. A limited-by-share company which had established its principal office in Taiwan before the Government relocated to Taiwan.
2. A limited-by-share company which originally established its principal office in Mainland China and its branch office in Taiwan and was approved by the Government to change into an independent body in Taiwan.
3. A limited-by-share company which originally established its principal office in Mainland China and resumed its business after the Government relocated to Taiwan.

The term “Shareholders in Mainland China” as used in this Act denotes shareholders who had resided in Mainland China and held shares of a Company in Taiwan when the Government relocated to Taiwan.

The shares of Shareholders in Mainland China are reserved shares in each of a Company in Taiwan before the unification of the nation; and this shall also apply in the case of inheritance or assignment/transfer.
A Company in Taiwan shall suspend accepting the request of Shareholders in Mainland China to change records in the shareholders’ roster due to inheritance, assignment/transfer or other reasons before the unification of the nation.

The reserved shares shall have no voting rights and shall not be counted in the total number of issued shares while adopting a resolution at a meeting of shareholders for a Company in Taiwan.

The dividends and other profits of the reserved shares shall be saved in a special account of each of a Company in Taiwan before the unification of the nation.
When a Company in Taiwan issues new shares, Shareholders in Mainland China shall have no right to subscript new shares before the unification of the nation.

This Act shall take effect from the date of promulgation thereof.