The establishment of a supervisor is a necessary supervisory and self-manageable unit for Taiwan company limited by shares pursuant to Company Act and aims to oversee the overall business operation and examination of accounting. The definition of “Supervise” is not only limited to hold the rights to oversee the businesses operated by directors, but also hold the rights to examine the accounting records of company. To meet the demand of such unit, the supervisor is able to execute its power and privilege to avoid any suspicious cheating events.

According to the article 222 in Company Act, due to the engagement relationship with company, the supervisor is not allowed to act as director, managerial officer and employee at the same company. In addition, the supervisor also cannot apply for Taiwan labor insurance and withholding the pension. In the circumstance that the supervisor acts as director and managerial officer simultaneously, such supervisor would be disqualified and dismissed, but the position of director and managerial officer is still remained. If the application of labor insurance is submitted with the identity of director and managerial officer, such application is legal and couldn’t be rejected without justification by Bureau of Labor Insurance.

Upon the judicial side, in the condition that the supervisor in the identity of labor at the same time, the employee contract can be remained which would be ruled by the court if the supervisor has indeed been undertaking the works of labor to receive the wages during the term of office accordingly.

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