Regulations Governing Futures Trust Enterprises Article 24

Except as otherwise prescribed by the competent authority, a futures trust enterprise applying to carry out a capital reduction through return of capital shall comply with the following requirements:1. Its financial reports for both the most recent fiscal year and fiscal half-year have been audited and attested to by CPAs who have issued an unqualified opinion thereon, and the enterprise has good financial standing with neither losses nor accumulated deficit.2. It has, during the most recent fiscal year or fiscal half-year, as the case may be, truly and faithfully implemented the improvements recommended in the written recommendations for improvements to internal controls issued by the CPAs upon auditing and attestation.3. It has not been sanctioned under Article 100, paragraph 1, subparagraphs 2 to 4 of the Act, Article 103, subparagraphs 2 to 5 of the Securities Investment Trust and Consulting Act, or Article 66, subparagraphs 2 to 4 of the Securities and Exchange Act during the most recent 3 years. This restriction does not apply, however, if such a violation has already been specifically corrected, and the correction has been recognized by the competent authority.The futures trust enterprise's amount of capitalization after the capital reduction through return of capital shall be no less than the minimum paid-in capital set out in Article 11 of the Standards Governing the Establishment of Futures Trust Enterprises, and, except as otherwise prescribed by the competent authority, its net worth after the capital reduction shall be no less than NT$900 million.