國家中山科學研究院設置條例

To enhance the competence of national defense technology, establish a self-reliant defense industry, expand national defense and military and civilian dual use technology, the National Chung Shan Institute of Science and Technology (hereinafter referred to as the “NCSIST”) is hereby established and this Act is hereby adopted.

NCSIST is an administrative corporation; the Ministry of National Defense (hereinafter referred to as the “MND”) is the competent supervisory authority of NCSIST.

1Paragraph (1)

2NCSIST is in charge of the following affairs:

3Subparagraph (1)

4Researching and developing, manufacturing, and selling defense technology and major weapon equipment.

5Subparagraph (2)

6Researching and developing, manufacturing, and selling military and civilian dual use technology.

7Subparagraph (3)

8Engaging in domestic and international technology cooperation, information exchange and promotion.

9Subparagraph (4)

10Engaging in domestic and international technology transfer, technical services, and industrial services.

NCSIST is regarded as a government institution while conducting the procurement under Subparagraph 3 of Paragraph 1 in Article 105 of the Government Procurement Act, hereby the MND is its administrative authority.

1Paragraph (1)

2NCSIST is funded by:

3Subparagraph (1)

4Budgets approved and allocated by the government and donations (subsidies) from the government.

5Subparagraph (2)

6Donations from domestic and foreign, public and private institutions and groups and individuals.

7Subparagraph (3)

8Income from the research entrusted to NCSIST and the services provided by NCSIST.

9Subparagraph (4)

10Income from operations and research accomplishments.

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1Paragraph (1)

2NCSIST shall adopt its articles of incorporation and the rules and regulations governing the management of personnel, accounting system, internal control, auditing and others, and shall submit them to the board of directors for approval and therefore submit them to MND for reference. The NCSIST rules and regulations relating to Paragraph 2 of Article 3 shall be approved by MND.

3Paragraph (2)

4NCSIST may adopt the rules and regulations governing the public functions it performs within the scope of relevant laws or legal orders, and shall submit them to the board of directors for approval and thereafter submit them to MND for reference.

1Paragraph (1)

2There is a board of directors in NCSIST, with eleven to fifteen directors selected among the following people by MND and appointed by the Premier of the Executive Yuan. The same shall apply to the discharge of the directors:

3Subparagraph (1)

4Representatives of relevant governmental agencies, the minister of MND, the deputy minister of Ministry of Economic Affairs, and the deputy minister of National Science Council of the Executive Yuan are certainly definite directors.

5Subparagraph (2)

6Scholars and experts in the field of research of national defense technology.

7Subparagraph (3)

8Entrepreneurs, management experts, or the persons who make great contributions to NCSIST.

9Paragraph (2)

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1Paragraph (1)

2There are three to five supervisors in the institute, selected among the following people by the MND and appointed by the Premier of the Executive Yuan. The same shall apply to the discharge of the supervisors:

3Subparagraph (1)

4Representatives of relevant governmental agencies.

5Subparagraph (2)

6Scholars and experts in the field of research, and experts in the national defense technology.

7Subparagraph (3)

8Scholars and experts in the field of law, accounting or finance.

9Paragraph (2)

10A managing supervisor shall be elected among supervisors.

1Paragraph (1)

2The term of office of each director or supervisor is three years. The director or supervisor may be reappointed once upon the expiration of his or her original term of office. The number of members being reappointed may not exceed two-third of the total number of directors and may not be less than one-third of the total number of directors.

3Paragraph (2)

4The directors and supervisors acting on behalf of government agencies shall be replaced if their positions are changed, and may not be bound by the restriction on the times of reappointment as specified in the preceding Paragraph. If there is a vacancy existing in the directors and supervisors appointed according to Paragraph 1 of Article 7 and the preceding Article before the expiration of their terms of office, the vacancy shall be filled through the election by the MND and the appointment by the Premier of the Executive Yuan, and the term of office of the new director or supervisor shall continue until the expiration of the term of office of the original director or supervisor.

5Paragraph (3)

6The regulations relating to the appointment, discharge, and replacement of the directors and supervisors of NCSIST will be adopted by the MND.

1Paragraph (1)

2There is one chairman of the board of directors, and the minister of MND serves concurrently of this position.

3Paragraph (2)

4The chairman shall manage and oversee all affairs of NCSIST, while acting as the representative of the NCSIST to the public. If the chairman of the board of directors is unable to perform his or her duties, a director designated by the chairperson shall act in his or her place. If no such director can be designated, the directors shall select one among themselves to serve as the acting chairman.

1Paragraph (1)

2The authority of the board of directors is as follows:

3Subparagraph (1)

4Reviewing and discussing ten-year national defense science and technology development concept and five-year national defense science and technology research, application and production plan.

5Subparagraph (2)

6Reviewing and discussing annual operating (business) objectives and operational plans.

7Subparagraph (3)

8Reviewing and discussing the annual budget and the final accounts of the review.

9Subparagraph (4)

10Reviewing and discussing the rules and regulations.

1Paragraph (1)

2The meetings of the board of directors shall be held once three months. An extraordinary meeting may be held if necessary.

3Paragraph (2)

4The chairman of the board of directors shall convene the meetings and act as the chairperson. A resolution of a meeting of the board of directors shall be made upon the approval of more than half of the directors present at the meeting representing more than half of all directors, provided that each of the resolutions specified in Subparagraphs 1 to 7 of the preceding Article shall be made upon the approval of more than half of all directors.

1Paragraph (1)

2The authority of the supervisors is as follows:

3Subparagraph (1)

4Supervising business and financial statuses.

5Subparagraph (2)

6Auditing financial accounting books, documents and information of assets.

7Subparagraph (3)

8Verifying financial statement reports.

9Subparagraph (4)

10Verifying or auditing other major matters.

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1Paragraph (1)

2There is one president in NCSIST, nominated by the chairman and appointed by the board of directors. The same shall apply to the discharge of the president. The president should have experiences of national defense science and technology or business management. The term of office of president is three years. The president may be reappointed once upon the expiration of his original term of office.

3Paragraph (2)

4The president shall not exceed the age of sixty-five at his first term of office. If the president reaches the age of seventy before the expiration of his term of office, he shall be replaced immediately, provided that special exemptions may be made upon the approval of the Executive Yuan.

5Paragraph (3)

6The president is responsible for operations and management in accordance with the rules and regulations of NCSIST, resolutions of the board of directors and the authorization of the chairman of the board of directors. The president shall attend the meetings listed in the second Paragraph of Article 20 in this Act.

1Paragraph (1)

2Directors, supervisors, and the president shall comply with the principle of avoiding conflict of interest, and may not exploit powers, opportunities or means connected with their duties to contrive to gain benefit for themselves or related persons. The scope of conflict of interests to be avoided and how to deal with it when a violation occurs shall be decided by the MND.

3Paragraph (2)

4There shall not be any spousal relationship or any relationship of blood or marriage within the third degree between a director, a supervisor, and the president.

5Paragraph (3)

6The spouse, blood relatives within third degree, and relatives by marriage of directors, supervisors, and the president shall not hold positions of accounting, general affairs, or human resources with the NCSIST.

7Paragraph (4)

8The chairman and the president shall not employ his/her spouse, blood relatives within third degree, or relatives by marriage.

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1Paragraph (1)

2Directors, supervisors, and the president or their related persons may not engage in any trading, leasing, work contracting or other such transaction with the NCSIST. But this restriction shall not apply if there is a proper reason and if the board of directors has passed a special resolution approving it.

3Paragraph (2)

4If the NCSIST incurs loss or damage resulting from a violation of the provisions of the preceding paragraph, the person or persons who committed the violation shall be liable to compensate for the loss or damage.

5Paragraph (3)

6In the situation referred to in the proviso to Paragraph 1, the NCSIST shall proactively make public the content of the special resolution passed by the board of directors, within twenty days after the meeting, and shall report the same to the Ministry of National Defense for reference filing.

The directors and managing supervisors shall attend or guest on board meetings in person, and shall not appoint proxies to attend.

1Paragraph (1)

2A person to whom any of the circumstances listed below pertains may not be appointed as a director or supervisor:

3Subparagraph (1)

4Persons who are subject to the commencement of guardianship or assistantship and have not yet revoked those orders.

5Subparagraph (2)

6Persons who have been sentenced to imprisonment for a definite period or a more severe punishment, and have not been ordered a suspension of a punishment.

7Subparagraph (3)

8Persons who declare bankrupt and have not yet resume their rights.

9Subparagraph (4)

10Persons who have been deprived of civil rights and have not yet resume their rights.

Adjunct directors or supervisors may not receive remuneration.

1Paragraph (1)

2The supervisory authorities of the MND over NCSIST are as follows:

3Subparagraph (1)

4Approving the development plans of 10-year national defense technology, and the research, applications, and production plans of 5-year national defense technology.

5Subparagraph (2)

6Approving the rules and regulations, annual business plans and budgets, annual performance and financial statement reports, or receiving them as reference.

7Subparagraph (3)

8Inspecting the assets, financial and national secret protection status.

9Subparagraph (4)

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1Paragraph (1)

2The MND shall invite the representatives of relevant agencies, scholars, experts and impartial public figures to evaluate the performance of NCSIST.

3Paragraph (2)

4The methods, procedures and other relevant matters regarding the performance evaluation specified in the preceding Paragraph will be adopted by the MND.

5Paragraph (3)

6The contents of the performance evaluation are as follows:

7Subparagraph (1)

8Accessing the annual performance of NCSIST.

9Subparagraph (2)

10Measuring the operational performance and achievement rate toward the defined goals of NCSIST.

1Paragraph (1)

2NCSIST shall make the guidance of 10-year national defense technology development and 5-year national defense technology research, applications, production plan under Paragraph 2 of Article 20, and submit to the MND for approval every four years.

3Paragraph (2)

4NCSIST shall make annual business plans and allocate its budgets, and submit to the board of directors for approval and report to the MND for reference filing.

1Paragraph (1)

2Within two months after the end of each fiscal year, NCSIST shall appoint certified public accountants for auditing and certificating the report of operations performance and the statement of receipt and expenditure, and submit to the board of directors for approval, and report to the MND for reference filing and to the audit department.

3Paragraph (2)

4The said financial statement shall be audited by the audit department, and the outcomes of which shall be submitted to MND or other relevant institutes for further processing.

1Paragraph (1)

2Being along with the transfer the Chung-Shan Institute of technology of Armaments Bureau of MND, the employment, military service, appreciation, reward, punishment, performance appraisal, training and education, salary, insurance, pension, welfare, veterans, out of military service and other matters of interest to all military personnel comply with the original laws, for some of which are not applicable shall be otherwise specified by the Executive Yuan.

3Paragraph (2)

4Retaining the original benefits of military personnel, the Ministry of Defense may amend the organization referring to the arrangement table of classes and posts.

5Paragraph (3)

6The military personnel meeting the 1st item should act for the demobilization, out of military service in accordance with NCSIST personnel management regulations, and without money on auxiliary benefits.

1Paragraph (1)

2The original civilian employees along with the transfer of the Yuan will retain the previous title till retirement. The related matters referring to service, punishment, performance, training and education, salary, insurance, security, association, raising contingent, pensions, benefits and others of interest are in accordance with the applicable laws of the government employee’s service, for some of which are not applicable shall be otherwise specified by the Executive and Examination Yuan.

3Paragraph (2)

4The employees mentioned above serve in NCSIST after retirement or dispatch shall be in accordance with the personnel management regulations, and without money on auxiliary benefits.

5Paragraph (3)

6The government employees after retirement serve in NCSIST, the suspension of concessions and pension matters should comply with the government employees compensation regulations.

1Paragraph (1)

2All kinds of the staff who transfer to NCSIST, their rights and interests including service years, wage, insurance, retirement, pensions, welfare and so on will follow original relevant labor laws and regulations or contracts.

3Paragraph (2)

4The employees as mentioned as previous paragraphs, the beginning of their seniority date should be based on the original employment date before reorganization, and also adopted by the same retirement pension conditions. The employees who are legally suitable for Labor Standards Law, their retirement pension and severance pay should accord with the article 17, article 55, and the second item of article 84 under the Labor Standards Law. In spite of the organization restructuring, the total number of pension cannot be allowed to exceed in the sum of 45 month salaries based on the multiplicand of 45-month-average salary before their retirement.

1Paragraph (1)

2Military officers who are not willing to transfer along with NCSIST should be arranged by MND. Those who can not be arranged can apply for retirement by following original relevant laws and given consolation money equal to 7 months salary.

3Paragraph (2)

4The military officers given consolation money should be major at least and should satisfy certain qualification which is service year should be more than twenty years and reaching the maximum age of active duty or more than seven months before maximum year.

5Paragraph (3)

6Those military officers, who arrange by MND to other MND departments, retire from service or then stay in NCSIST, will not receive compensation money.

7Paragraph (4)

8The military officers who receive the differential compensation payment when they choose to retire and leave, within seven months of the above effective date, if they apply new jobs from governmental offices or corporate administration with paid positions, should submit extra compensation payment which is calculated beyond the period of the two jobs.

1Paragraph (1)

2The government employee who are not willing to transfer along with NCSIST can apply for retirement or be dismissed from restructuring by following original relevant laws and to be given consolation money equal to 7 months salary. But those who are reaching the age of retirement are not included.

3Paragraph (2)

4The public servants who receive the differential compensation payment when they choose to retire or lay off, within seven months of the above effective date, if they apply new jobs from governmental offices or corporate administration with paid positions, should submit extra compensation payment which is calculated beyond the period of the two jobs.

5Paragraph (3)

6The total amount of payments mentioned as former paragraph in the article, are referred to basic pay, professional specialty pay, and supervisory pay which the public servants receive these payments happened at the month of retirement or lay off.

1Paragraph (1)

2All kinds of staff who are not willing to transfer along with NCSIST, should be arranged by MND from restructuring. Those cannot be arranged can apply for retirement or be dismissed by following original relevant laws, regulations or contracts and to be given consolation money equal to 7 months salary. But those who are reaching the age of retirement are not included.

3Paragraph (2)

4The employees who receive the differential compensation payment when they choose to retire or lay off, within seven months of the above effective date, if they apply new jobs from governmental offices or corporate administration with paid positions, should submit extra compensation payment which is calculated beyond the period of the two jobs.

5Paragraph (3)

6The total amount of payments mentioned as former paragraph in the article, are referred to basic pay and professional specialty pay which the employees receive these payments happened at the month of retirement or lay off.

The regular contract workers of original organization can transfer to NCSIST and continue to work until expiry based on the contract and NCSIST should pay retirement pension to their personal account. Those who are not willing to transfer to CSIST should be given severance pay without consolation money based on relevant regulations and then terminate the contract.

1Paragraph (1)

2The labor pension account, contributed under the Labor Standard Act and the Labor Pension Statute, shall transfer to the NCSIST from the original agency on the date of establishment.

3Paragraph (2)

4For the severance and consolation paid by the original agency, MND may allocate budget by making adjustments within the original scope of the budget without being limited by Articles 62 and 63 of the Budget Act.

The original agency shall make a list of the employees who are on resentment, suspension (including dismiss not confirmed) and leave without pay to the NCSIST. After condition relief, those employees may choice to continue work for the NCSIST or may make decision to retire or severance with consolation added according to the Article 27 to Article 29 of this Act and with the assistance of MND.

1All the rights and obligations may be applied mutatis mutandis to above military members and are independent in article 20,paragraph 1,of Non-Departmental Public Bodies Act Art.;Their severance and retirement payment shall be in accordance with Labor Pension Act.

2Paragraph (2)

3The employees hired by the NCSIST after the date of establishment will bear no government office statue and the Labor Standard Act shall govern. The retirement pension and severance will be in accordance with the Labor Pension Stature.

4Paragraph (3)

5The right and obligation for the personnel in the previous paragraph will be governed by the labor contract and work regulation.

1NSSICT workers are not allowed to conduct international travel without authority’s permission.

2International travel related affairs such as applications, conditions, procedures, execution and abolishemnt, and annexings are regulationed by MND.

The fiscal year adopted by the NCSIST shall be the same as that of the government.

1Paragraph (1)

2The NCSIST shall mandate a certified public accounting firm to audit and verify all its financial statements.

3Paragraph (2)

410% of the NCSIST annual profit, which is after tax and reimbursement of previous year loss, shall distribute to the government.

1Paragraph (1)

2The asset and debts of the original agency which belong to the Armed Production and Service Operation Fund, Shall transfer to the NCSIST on the date of establishment.

3Paragraph (2)

4The competent supervisory authority may approve and allocate budget by making adjustments within the original scope of the budget in the year of the establishment of the NCSIST without being limited by Articles 62 and 63 of the Budget Act.

1Paragraph (1)

2At the establishment, If the NCSIST is in business needs to use the public property, it may be donated, leased or provided for use free of charge to the NCSIST. In the case of donation, Articles 25 and 26 of the Budget Act and Articles 28 and 60 of the National Property Act shall not apply.

3Paragraph (2)

4The NCSIST may procure public real estates after its establishment. The price for land shall be based on the announced current land value. The price for constructional improvement shall be based on its current value as assessed by the tax authority. Where the tax authority has not assessed the current value, the value shall be based on an assessment made by the public property management authority.

5Paragraph (3)

6Where a governmental agency approves and allocates budget to the NCSIST to purchase properties for a designated purpose, the properties shall be deemed public properties.

7Paragraph (4)

8Except for the public properties leased or provided for use free of charge as set forth in Paragraph 1 and the public properties prescribed in the preceding paragraph, all of the properties acquired by the NCSIST shall be deemed private properties.

1Paragraph (1)

2The approval and allocation of budget by a governmental agency for the NCSIST shall be governed by legal budgetary procedures and supervised by the audit authority.

3Paragraph (2)

4If the budget in the paragraph 1 exceeds fifty percent of the annual budgetary income of the then current year, the competent supervisory authority shall submit the annual budgetary statement of the NCSIST to the Legislative Yuan for review.

The debts raised by the NCSIST shall be limited to self-liquidating loans, which shall be submitted to the competent supervisory authority for approval in advance. If it is likely that debts cannot be repaid by self-liquidation according to the outcome of budget implementation, the NCSIST shall promptly review and propose improvement measures to the competent supervisory authority for approval.

1Paragraph (1)

2The NCSIST’s procurement procedure shall be based on the principles of openness and fairness and in accordance with the treaties or agreements which are concluded by the Republic of China.

3Paragraph (2)

4The Government Procurement Act shall not apply to the procurement procedure in paragraph 1, except for the circumstances set forth in Article 4 of Government Procurement Act.

5Paragraph (3)

6Where a law other than the Government Procurement Act is applicable to the procurement subject to Article 4 of the Government Procurement Act as prescribed in the preceding Paragraph, the law shall prevail.

1Paragraph (1)

2The weapon, naval vessel, aircraft, armed combat vehicle, reconnaissance and communication equipment related to warfare, which sold or used by the NCSIST shall be free from the business tax.

3Paragraph (2)

4The research and development (manufacturing) project contract awarded by MND and its subordinate to the NCSIST shall be free from the business tax.

5Paragraph (3)

6The goods procured by the NCSIST and approved by MND for the military use, shall be free from commodity tax according to the Regulation for Exemption of commodity Tax on goods for Military Use.

7Paragraph (4)

8The weapon, equipment, vehicle, naval vessel, aircraft, and its accessory, and other material, which imported by the NCSIST for the military use shall be free from import duty according to the Regulation Governing Duty Exemption on goods for military use.

1Paragraph (1)

2The relevant information of the NCSIST with the exception under the National Security Protection act, shall be made available to the public pursuant to the Freedom of Government Information Act. The NCSIST shall take initiative in making its annual financial statements, annual business information and annual performance evaluation reports available to the public.

3Paragraph (2)

4The competent supervisory authority shall submit the performance evaluation reports prescribed in the preceding Paragraph to the Legislative Yuan for reference. The Legislative Yuan may, as it deems necessary, summon the head of the competent supervisory authority together with the chairman of the board of directors, the Director or related officers of the NCSIST to report the operation status and answer questions at the Legislative Yuan.

Any personnel who has objection against the administrative disposition given by the NCSIST may file an administrative appeal to the competent supervisory authority in accordance with the Administrative Appeal Act.

1Paragraph (1)

2If the NCSIST cannot achieve the objectives of its establishment due to change of circumstances or poor performance, the competent supervisory authority shall apply to the Executive Yuan for the dissolution of the NCSIST, which shall be enforced upon the approval of the Executive Yuan.

3Paragraph (2)

4If the NCSIST is dissolved, the government officer will be arranged by the MND or in accordance with related regulations to retire or severance. All other employment contracts with the employees of the NCSIST shall be terminated, and the remaining assets shall be turned over to the treasury with all debts assumed by the competent supervisory authority.

The enforcement date of this Act shall be determined by the Executive Yuan.