Article 19 A privately-run school shall set up an executive council, a board of directors or other forms of decision-making bodies of the school.

Article 20 The executive council or the board of directors of the school shall be composed of the sponsors or their representatives, the principal, and the representatives of the teachers and staff members. More than one-third of the council members or directors shall, at least, have five years’ education or teaching experience each.

The executive council or the board of directors of the school shall be composed of not less than five persons, with one of them serving as chairman of the council or board. The name list of the chairman and members of the council or the chairman of the board and directors shall be submitted to the examination and approval authority for the record.

Article 21 The executive council or the board of directors of a school shall exercise the following functions and powers:

(1) to appoint and dismiss the principal;

(2) to amend the articles of association of the school and formulate rules and regulations of the school;

(3) to make development plans and approve annual work plans;

(4) to raise funds for running the school, and examine and verify the budgets and final accounts;

(5) to decide on the size and the wage standards of the teachers and staff members;

(6) to decide on the division, merging and termination of the school; and

(7) to decide on other important matters.

The functions and powers of other forms of decision-making bodies shall be defined in reference to the provisions of this Article.

Article 22 The chairman of the executive council or the board of directors or the principal of a privately-run school shall serve as the legal representative of the school.

Article 23 A privately-run school shall, in reference to the qualifications for the principal of a government-run school of the same grade and category, appoint its principal, and the age limit may appropriately be extended both ways, and the appointment shall be reported to the examination and approval authority for verification and approval.

Article 24 The principal of a privately-run school shall be in charge of education, teaching and administration of the school, and exercise the following functions and powers:

(1) to carry out the decisions made by the executive council, board of directors or any other form of decision-making body;

(2) to put into execution the development plans, draw up the annual work plans and financial budgets, and formulate the rules and regulations of the school;

(3) to appoint and dismiss staff members of the school, and give rewards and impose punishments;

(4) to make arrangements for education, teaching and scientific research, and ensure the quality of education and teaching;

(5)to be responsible for the daily work of school administration; and

(6) other powers delegated by the executive council, the board of directors or any other form of decision-making body of the school.

Article 25 A privately-run school may, on the basis of their classifications, the length of schooling and their academic performance and in accordance with the relevant regulations of the State, issue academic credentials, certificates for completing a course or qualification certificates of training to the students it enrolled.

Students who receive training in vocational skills may be awarded vocational qualification certificates of the State when they are considered qualified by the vocational skills appraisal authority approved by the State.

Article 26 A privately-run school shall, in accordance with law, ensure that the teachers and staff members participate in democratic management and supervision through the representative assembly of the teachers and staff members with the teachers as the main body, or through other forms.

Teachers and staff members of a privately-run school shall, in accordance with the Trade Union Law, have the right to form trade union organizations to protect their lawful rights and interests.