Corporate Criminal Liability in Taiwan: Challenges, Innovations, and Evolving Legal Frameworks

Taiwan is grappling with challenges regarding the reform of corporate criminal liability laws. Rather than having general provisions in the Criminal Code, corporate criminal liability in Taiwan is mainly prescribed in various specific laws, such as the Banking Act and the Trade Secret Act. Moreover, it lacks the fundamental rules for establishing criminal liability, such as determining the mental state of a legal person. Hence, Taiwan has adopted a unique “double punishment” mechanism that allows for multiple penalties for a single offense, i.e., punishing both natural persons and the legal entities to which they belong. The high-profile case, Micron vs. UMC, highlights the importance of how Taiwanese courts handle matters involving corporate criminal liability and how companies assert their defense claims. This case exemplifies corporate criminal liability defense under the Trade Secret Act, offering insights into the legal complexities. Recent amendments, including those to the National Security Act and Civil Torts Law, demonstrate ongoing efforts to strengthen Taiwan’s corporate liability framework. These efforts emphasize the need for a robust framework for analyzing corporate behavior and misconduct, highlighting the importance of corporate criminal liability in safeguarding public interests.