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SHAREHOLDERS OF LIMITED COMPANIES CAN EXAMINE BOOKS ACCOMPANIED BY LAWYER OR ACCOUNTANT
With regard to companies limited by shares, the Company Act provides that prior to an annual meeting of shareholders, the company must hold all statements and reports prepared by the board of directors, and the reports of the supervisors, at the company headquarters, and that a shareholder may examine such documents at any time, and may do so accompanied by a lawyer or accountant instructed by him/her/it. Supervisors are required to oversee the conduct of the company's business operations, and may at any time investigate the status of the company's operations and finances, audit company records, or request the board of directors or the managers to prepare reports. When conducting such affairs, a supervisor may on the company's behalf engage a certified public accountant to carry out an audit.
According to a 2007 judgment of the Shihlin District Court, the legislative intent of the above provi-sions regarding companies limited by shares is that when shareholders and supervisors exercise their powers, because the relevant records and documents are of a nature such that they may not be readily understood by a person lacking specialist knowledge, they may be accompanied by a lawyer or ac-countant to conduct such review. With regard to limited companies, when shareholders wish to exer-cise their such audit right, the above provisions should be applicable by analogy, so that shareholders of limited companies should also be allowed to be accompanied by a lawyer or accountant when con-sulting company records.