The Executive Yuan today passed a draft version of the Act Governing Incorporated Foundations, to be forwarded to the Legislature for deliberation.
Premier Lin Chuan said that nonprofit organizations play a vital role in today's society as they operate mainly to serve public interest. It is therefore imperative to ensure financial transparency and make their personnel systems more open and comprehensive.
After providing financial assistance to many incorporated foundations in the past, because of the framework in which those foundations operated, the government lost the right to appoint directors and supervisors, which is not necessarily reasonable, the premier said. The proposed act, drafted by the Ministry of Justice (MOJ), will address all of these issues with one progressive piece of legislation, creating a more reasonable operational and regulatory environment for Taiwan's foundations so that they can develop in a positive direction.
According to the MOJ, Taiwan's regulatory system does not presently have a dedicated law governing incorporated foundations, and the Civil Code merely provides a few guiding principles. The ministry thus proposed a special act to create a comprehensive regulatory environment where government agencies can process foundation establishment permits more efficiently, and appoint directors and supervisors. This will ensure that the foundations fulfill their objectives of serving public interest and promoting the well-being of citizens.