Competent Authority
Aerospace Ace Industrial Development Corporation (hereinafter referred to as "the Corporation)" is a national defense technology company established to develop the aviation industry, and the competent authority of the Corporation is the Ministry of Economic Affairs.

Scope of Application
Organization, operating and management of the Corporation shall be subject to the provisions of this Act; for any affairs other than prescribed hereinto, the Company Act, regulations on management of state-owned enterprises and other related laws shall apply.

Business Scope of the Corporation
The business of the Corporation includes the following:
1.Development, manufacturing, decoration，repair and sale of domestic and foreign military and civil aviation and related industrial products.
2.Assistance in the domestic and foreign aviation industries' establishing central satellite systems and institutions.
3.Provision of the technical services related to planning, integration, development and management of the aviation industrial system.

Establishment of the Board of Directors and the Supervisors
A board of directors composed of 9~15 directors shall be established in the Corporation, and 3~5 standing directors shall be elected from and by the directors, and one shall be selected from and by the standing directors to act as the board chairman, and the competent authority shall report the commission of the board chairman to the Executive Yuan for approval.
In the Corporation shall also be established 3~5 supervisors, and one shall be elected from and by the supervisors to act as the standing supervisor, and the commission of the standing supervisor shall be reported to the competent authority for approval.
Regulations on establishment of the board of directors and the supervisors shall be established by the competent authority, and reported to the Executive Yuan for approval.

The board of directors of the Corporation has the following authorities:
1.Adjustment of capital amount and plan of diversification investment.
2.Determination of the Corporation's organic constitution and management regulations.
3.Preparation of the long-term and mid-term plans, operating policy and annual plan.
4.Review and approval of budgets and final settlement of accounts.
5.Examination and transmission of long-term loans not listed in the budget and distribution of corporation bonds.
6.Examination and approval of selling off or exchange of lands, houses and main machines and equipment.
7.Examination and approval of construction projects or properties to be purchased that exceed the currency amount authorized by the board of directors.
8.Examination and transmission, or examination and approval of contracts.
9.Dismissal of managers Grade 1 or higher
10.Examination and transmission of the standard of treatment for the employees and determination of the welfare measures.

Establishment of General Manager and Deputy General Managers
In the Corporation one general manager shall be established to preside over all the operations of the Corporation under the direction of the board of directors, and 3~7 deputy general managers shall be set to assist the general manager to manage the Corporation.
The commission of the general manager referred to in the preceding paragraph shall be nominated by the board chairman and, with the approval of the board of directors, reported by the competent authority to the Executive Yuan for approval; and the deputy general managers shall be employed by the general manager with the approval of the board of directors.

Personnel Identities and Applicable Acts
The board chairman, standing supervisor, and general manager as well as the standing directors, directors, and supervisors representing the state-owned share of stock are endowed with the identity of public servant. Commission, dismissal, evaluation, rewarding, punishment, treatment, retirement, compensation, insurance and other affairs concerning the foresaid persons shall be handled by the competent authority in accordance with the Company Act and other related laws and regulations on public servant.
Employment, dismissal, salary, evaluation, rewarding, punishment, retirement, compensation for death, severance, insurance (including vocational disaster insurance) and other affairs concerning the deputy general managers and other employees of lower grades of the Corporation shall be handled in accordance with the personnel management rules of the Corporation, and shall not be applied to the related laws and decrees on public servant. The personnel management rules shall be prepared by the competent authority and reported to the Executive Yuan for approval.

Submission of Budget and Final Settlement for Review
The corporation shall compile annual budgets and final settlements according to relevant laws, and shall submit them for review according to the specified procedure.

Allocation of Assets
The Corporation is invested and established by the Ministry of Economic Affairs based on the whole productive assets of the Aviation Industry Development Center, Chung-shan Institute of Science and Technology under the Ministry of National Defense.
The Ministry of National Defense shall transfer the assets to the Ministry of Economic Affairs within 2 years, and the existing personnel will be arranged or dismissed by the Ministry of Economic Affairs jointly with the Ministry of National Defense in accordance with related laws and regulations.

Time of Transition to Nongovernmental Business and Disposal of Lands
After being established under this Act, the Corporation shall be transformed within 3.5 years to nongovernmental business according to the Act for Transformation of Public-Operated Enterprises to Private-Owned.
The lands of the Corporation shall be owned by the state. However, if the land is used for the aviation industry, where it is necessary to make repairs or extensions, the government shall agree and may not take back the lands.

Date of Enforcement
The date of enforcement of this Act will be determined by the Executive Yuan.