| Article 38 | A short-term bills clearing and depository organization shall deposit NT$100 million as security bond.
The aforementioned security deposit shall be deposited into the Central Bank in the form of cash, guarantee bonds, or bank debentures. |
| Article 39 | After a short-term bills clearing and depository organization completes the payment of all taxes and distributes earnings, it shall appropriate 30% as legalreserve. Beforethe legalreserve reaches the same value as the paid-incapital, the maximum distribution of earnings in cash may not exceed 15% of the paid-in capital.
Where the legal reserve already exceeds the paid-in capital, the restrictions in the preceding paragraph shall not apply.
In addition to the legalreserve, a short-term bills clearing and depository organization may propose a special surplus reserve based on regulations in the Articles of Incorporation or a resolution of the shareholders' meeting. |
| Article 40 | A short-term bills clearing and depository organization shall produce an annual report at the end of each fiscal year and submit the business report, balance sheet, registry of property, income statement, statement of changes in shareholder equity, cash flow statement, resolutions for earnings distribution or make-up for losses, and other items stipulated by the competent authority to both the competent authority and the Central Bank before they begin operations within 15 days of ratificationin the shareholders' meeting.
A short-term bills clearing and depository organization shall announce the balance sheet, income statement, statement of changes in shareholder equity, cash flow statement, and other items stipulated by the competent authority in a newspaper that is circulated in the area of the organization's location or in a method specified by the competent authority. However, announcements for items that already meet requirements in Article 36 of the Securities and Exchange Act shall not be required.
The statements and items to be announced in accordance with the preceding paragraph shall be audited and certified by aCPA. |
| Article 41 | Regulations in the two preceding articles shall not apply in cases where the role of the short-term bills clearing and depository organization is filled by a surviving institution as a result of a merger. However, the surviving institution shall prepare a business report and financial report for the operations of the short-term bills clearing and depository organization within four months of the end of each fiscal year and report to both the competent authority and the Central Bank for reference. |