漢翔航空工業股份有限公司設置條例

1Competent Authority

2Aerospace Ace Industrial Development Corporation (hereinafter referred to as "the Corporation)" is a national defense technology company established to develop the aviation industry, and the competent authority of the Corporation is the Ministry of Economic Affairs.

1Scope of Application

2Organization, operating and management of the Corporation shall be subject to the provisions of this Act; for any affairs other than prescribed hereinto, the Company Act, regulations on management of state-owned enterprises and other related laws shall apply.

1Business Scope of the Corporation

2The business of the Corporation includes the following:

31.Development, manufacturing, decoration，repair and sale of domestic and foreign military and civil aviation and related industrial products.

42.Assistance in the domestic and foreign aviation industries' establishing central satellite systems and institutions.

53.Provision of the technical services related to planning, integration, development and management of the aviation industrial system.

1Establishment of the Board of Directors and the Supervisors

2A board of directors composed of 9~15 directors shall be established in the Corporation, and 3~5 standing directors shall be elected from and by the directors, and one shall be selected from and by the standing directors to act as the board chairman, and the competent authority shall report the commission of the board chairman to the Executive Yuan for approval.

3In the Corporation shall also be established 3~5 supervisors, and one shall be elected from and by the supervisors to act as the standing supervisor, and the commission of the standing supervisor shall be reported to the competent authority for approval.

4Regulations on establishment of the board of directors and the supervisors shall be established by the competent authority, and reported to the Executive Yuan for approval.

1The board of directors of the Corporation has the following authorities:

21.Adjustment of capital amount and plan of diversification investment.

32.Determination of the Corporation's organic constitution and management regulations.

43.Preparation of the long-term and mid-term plans, operating policy and annual plan.

54.Review and approval of budgets and final settlement of accounts.

65.Examination and transmission of long-term loans not listed in the budget and distribution of corporation bonds.

76.Examination and approval of selling off or exchange of lands, houses and main machines and equipment.

87.Examination and approval of construction projects or properties to be purchased that exceed the currency amount authorized by the board of directors.

98.Examination and transmission, or examination and approval of contracts.

1Establishment of General Manager and Deputy General Managers

2In the Corporation one general manager shall be established to preside over all the operations of the Corporation under the direction of the board of directors, and 3~7 deputy general managers shall be set to assist the general manager to manage the Corporation.

3The commission of the general manager referred to in the preceding paragraph shall be nominated by the board chairman and, with the approval of the board of directors, reported by the competent authority to the Executive Yuan for approval; and the deputy general managers shall be employed by the general manager with the approval of the board of directors.

1Personnel Identities and Applicable Acts

2The board chairman, standing supervisor, and general manager as well as the standing directors, directors, and supervisors representing the state-owned share of stock are endowed with the identity of public servant. Commission, dismissal, evaluation, rewarding, punishment, treatment, retirement, compensation, insurance and other affairs concerning the foresaid persons shall be handled by the competent authority in accordance with the Company Act and other related laws and regulations on public servant.

3Employment, dismissal, salary, evaluation, rewarding, punishment, retirement, compensation for death, severance, insurance (including vocational disaster insurance) and other affairs concerning the deputy general managers and other employees of lower grades of the Corporation shall be handled in accordance with the personnel management rules of the Corporation, and shall not be applied to the related laws and decrees on public servant. The personnel management rules shall be prepared by the competent authority and reported to the Executive Yuan for approval.

1Submission of Budget and Final Settlement for Review

2The corporation shall compile annual budgets and final settlements according to relevant laws, and shall submit them for review according to the specified procedure.

1Allocation of Assets

2The Corporation is invested and established by the Ministry of Economic Affairs based on the whole productive assets of the Aviation Industry Development Center, Chung-shan Institute of Science and Technology under the Ministry of National Defense.

3The Ministry of National Defense shall transfer the assets to the Ministry of Economic Affairs within 2 years, and the existing personnel will be arranged or dismissed by the Ministry of Economic Affairs jointly with the Ministry of National Defense in accordance with related laws and regulations.

1Time of Transition to Nongovernmental Business and Disposal of Lands

2After being established under this Act, the Corporation shall be transformed within 3.5 years to nongovernmental business according to the Act for Transformation of Public-Operated Enterprises to Private-Owned.

3The lands of the Corporation shall be owned by the state. However, if the land is used for the aviation industry, where it is necessary to make repairs or extensions, the government shall agree and may not take back the lands.

1Date of Enforcement

2The date of enforcement of this Act will be determined by the Executive Yuan.