TIPS^®  Taiwan Intellectual Property Special

The Representative of a Foreign Company/Entity in a Lawsuit

Pursuant to the Taiwanese Company Law, only the president or statutory representative of a company can act on behalf of this company in taking legal action, including the issuance of the Power of Attorney ("POA"). The above provision is quite different from that of foreign company, especially the US company. Usually, a US company empowers its vice president or secretary other than the president to act on behalf of the company in signing any formal document, including the POA and attesting the POA before the notary public. Therefore, when a foreign company engaged in a lawsuit in Taiwan, the validity and formality of the POA issued by a person other than the president were always being questioned by the opposing party and/or the Court, despite the fact that the person is of the legal capacity to execute the POA pursuant to the company by-laws or Articles of Corporation.

To avoid the aforesaid dilemma, the Public Prosecutors' Office of the High Court declared that the POA signed and executed by a person other than the foreign company's president or statutory representative should be deemed legal and valid, if a declaration specifying his legal standing under the foreign law, company by-laws, and/or Articles of Corporation is attached to the POA.

In addition, for taking legal action before our Court, any POA executed in a foreign country is required to be notarized and legalized in the ROC Consulate or Representative Office.