Article Content
Chapter 5 Meetings of Trust Supervisors and Beneficiaries
| Article 42 | A trust enterprise engaging in collective trust fund business shall appoint trust supervisors, whose remuneration shall be stipulated in the collective trust fund agreement. |
| Article 43 | A trust supervisor who is a natural person shall possess one of the following qualifications:
1. Having served as an assistant manager or above or an equivalent position at the head office of a financial institution, and having at least 5 years of trust business experience and a good performance record.
2. Having obtained a CPA or lawyer license, and having at least 5 years of practical work experience.
3. Having taught finance, accounting, law, or trust related courses at a domestic or foreign junior college or higher for not less than 5 years.
4. Having at least 2 years of experience at a trust business related financial administration or management position, and having served as a civil servant in at least junior ranking (rank 9) or at an equivalent level position.
5. Having other experience sufficient to evidence the ability to effectively execute the official duties of a trust supervisor and uphold the rights and interests of beneficiaries.
An interested party or employee of a trust enterprise may not hold the position of trust supervisor for any collective trust fund offered by that trust enterprise. |
| Article 44 | A trust supervisor shall act with due care of a good manager to represent all beneficiaries in carrying out the following duties:
1. Take litigious or non-litigious actions regarding the trust in his/her/its own name on behalf of the beneficiaries.
2. When the trustee is derelict in its duties or has other serious situations, petition to the court at the request of the beneficiaries to discharge the trustee and appoint a new one.
3. At the request of the beneficiaries, take necessary actions in the interests of the beneficiaries.
4. Take other necessary actions pursuant to laws and regulations in the interests of the beneficiaries. |
| Article 45 | A trust supervisor with valid reasons may resign from his/her/its position with the consent of the trust enterprise or permission of a court.
When a trust supervisor is derelict in his/her/its duties or has other serious situations, a trust enterprise may discharge the trust supervisor and shall immediately appoint a new one.
A trust enterprise that appoints a new trust supervisor shall first submit the name list and qualification documents to the competent authority for approval.
When a trust supervisor has a situation provided in Paragraph 2 hereof and the trust enterprise fails to discharge the trust supervisor or appoint a new supervisor, the court may discharge the trust supervisor or appoint a new one pursuant to a petition filed by an interested party, a prosecutor, or the competent authority. |
| Article 46 | Where a collective trust fund has any of the following circumstances, the trust enterprise shall convene a beneficiaries' meeting:
1. Replacement of trustee.
2. Transfer, merger, or termination of the collective trust fund.
3. Increase in trustee remuneration.
4. Increase in trust supervisor remuneration.
5. Change in the designated operational scope or methods of the collective trust fund.
6. Otherwise as provided by other laws or regulations, the collective trust fund agreement, or the competent authority. |
| Article 47 | A beneficiaries' meeting may be convened in writing or by attendance in person. The adoption of a resolution at a beneficiaries' meeting shall require attendance by beneficiaries holding at least the majority of total number of beneficial units issued, and approval by beneficiaries present in the meeting who represent at least the majority of total number of voting rights.
If deemed necessary, the competent authority may order a trust enterprise to change the provisions of its collective trust fund agreement regarding quorum requirements, voting requirements, and method for adopting resolutions at a beneficiaries' meeting in the public interest or the interests of the beneficiaries. |