DE FACTO CONTROL:The head of the Investment Commission said that the company should abide by Chinese investment rules, as its Chinese investors control the firm
Date: Jun 29, 2016
By: Lauly Li / Staff reporter
The Investment Commission yesterday said it plans to appeal a ruling by an administrative court in favor of Taobao Hong Kong Ltd (香港淘寶), insisting the online retailer has failed to comply with investment rules in Taiwan.
“Although Taobao registered as a foreign company, its Chinese shareholders have de facto control of the firm, in violation of Taiwan’s investment regulations,” commission Executive Secretary Emile Chang (張銘斌) said by telephone.
Taobao Hong Kong’s parent company, Alibaba Group Holdings Co (阿里巴巴), in 2008 entered Taiwan by registering as a Singaporean company, Alibaba.com Singapore E-Commerce Private Ltd, instead of as a Chinese company, according to Ministry of Economic Affairs data. [FULL STORY]