International -- 2018



TCE Television Taiwan Ltd. v. Taoyuan Cty. Former RCA Emp.s Solicitude Ass'n   (Taiwan Supreme Court)

International legal norms and corporate separateness in Taiwan

The NAM filed a Civil Report Brief in the Taiwan Supreme Court supporting General Electric (GE) in a case it fought for fourteen years. Decades ago, GE purchased a subsidiary, RCA-Taiwan, which produced chemicals in a factory in Taiwan prior to GE’s acquisition. Years later, a lower court in Taiwan attempted to hold GE liable for the alleged prior harms of RCA-Taiwan, which was then appealed to the Taiwan Supreme Court. The NAM's brief explained why the lower court's ruling violated international norms of corporate law and how Taiwan’s legal system traditionally encouraged foreign investment by honoring the principle of corporate separateness and providing foreign investors with lawful assurance that their liabilities relating to those investments would be limited to the amount invested – a fundamental principle of corporate law. Unfortunately, the Taiwan Supreme Court held GE liable for the obligations of RCA-Taiwan and applied Taiwan’s law in a manner that is harmful to the critical interests of Taiwan in supporting its manufacturing industry and attracting foreign investment.


Related Documents:
NAM brief  (April 3, 2018)

 


© 2019 National Association of Manufacturers