(a) In relation to each type of insolvency procedure available in the legal system of this economy, to what extent are the claims of foreign creditors recognised in the context of administration of that procedure?

 

As long as the claims of foreign creditors are duly registered with the administrators pursuant to the applicable insolvency procedures, there is no limitation or restriction on such claims in terms of the recognition thereto.

(b) What principles or rules apply to the recognition and admission of claims by foreign creditors? (for example

 

There is no special principle or rule. Please refer to (a) above.

(c) What law is applied to establish the validity of foreign claims?

 

The validity of foreign claims shall be determined by the governing law thereof and in such event, the Statute of Conflict of Laws (the "Statute") shall apply. If there is no chosen governing law, the principles set forth in the Statute shall apply to determine the governing law. If a governing law is chosen, such governing law shall apply.

(a) To what extent does the insolvency law of this economy claim jurisdiction over assets of a corporate debtor situated abroad?

 

The insolvency law in the court is silent in this respect. This issue shall be determined by the law where foreign assets are located.

(a) To what extent do the rules of private international law of the legal system of this economy recognise insolvency procedures commenced in foreign jurisdictions?

 

Under the Statute of Conflict of Laws, the law in the foreign jurisdiction shall be applied in terms of the proceeding of the insolvency procedures involving a foreign company in that jurisdiction. However, as far as the assets located in Taipei,China are concerned, the foreign insolvency procedures will not be recognized pursuant to the Bankruptcy Law.

(b) Under what circumstances, if any, may orders or judgments resulting from foreign insolvency procedures or administrations be recognized or enforced in the legal system of this economy?

 

Please refer to (a) above.

(a) What recognition is accorded in the legal system of this economy to the status and capacity of insolvency administrators (for example trustees, liquidators, receivers) appointed in foreign insolvency procedures?

 

Given P3 (a) above, the authority of foreign insolvency administrator will be recognized by the court in accordance with the applicable foreign law.

(b) To what extent are foreign insolvency administrators entitled to claim, take control of, and realise or deal with property of the corporate debtor situated within the jurisdiction of the legal system of this economy?

 

Please refer to P3 (a) and P4 (a) above.

(a) To what extent does the legal system of this economy recognise the validity of rights of security asserted by foreign creditors over assets of the corporate debtor?

 

Assuming that a valid security has been created over the assets of corporate debtor located in Taipei,China in accordance with the law, the legal system will recognize such security having the priority in terms of payments. In other words, such security has no differences from the security held by a local person.

(b) Are any special rules applicable to determine the validity, extent and ranking of such security rights?

 

As far as the security over properties located in Taipei,China are concerned, if such security is duly created in accordance with the law, there is no difference between the security held by foreign creditor or local creditor. The Ministry of Interior and other government agencies have been holding a position that a foreign company must have a branch office in Taipei,China to entitle it to be registered as a mortgagee of chattel mortgage or real estate mortgage or to become a pledgee. Such position should not, in our view, be sustained in the court.

To create a valid real estate mortgage, a written agreement must be signed by the mortgagor and mortgagee and the mortgage must be registered with the government agency.

With respect to a chattel mortgage, a written agreement must be signed by the mortgagor and the mortgagee for the creation of security interest, and the mortgage must be registered with the government authority to invoke against third parties.

To create a valid share pledge, the share certificates in bearer form must be delivered to the pledgee for its possession during the pledge period, and the share certificates in registered form must be endorsed and delivered to the pledgee. In case of pledge over claims, a written agreement must be signed by the pledgor and the pledgee, and a notice must be served upon the debtor for the purpose of invoking such pledge against the debtor.

(a) To which international conventions having some application in insolvency matters is this economy a party?

 

Nil.

(b) When were these conventions entered into, and what other states are parties?

 

Not applicable.

(c) What observations can be made about the practical results achieved under these international instruments?

 

Not applicable.

(a) Are there any other particular issues or special problems in the field of cross-border insolvency, not included in the answers supplied above, which have presented themselves before the courts of the legal system of this economy?

 

No.

(a) Is the government of this economy aware of the UNCITRAL model law on cross-border insolvency, approved by the United Nations in June 1997?

 

Yes.

(b) If so, are you aware of whether the government has any proposals to enact the terms of the model law?

 

No.