Financial Holding Company Act Article 31

Articles 24 through 28 of this Act shall apply, mutatis mutandis, to the adjustment of the organization or shareholding structure of an investee enterprise when a financial institution converts into a financial holding company and such investee enterprise becomes an investee enterprise of the financial holding company.Persons holding the shares of a financial holding company as a result of a conversion done in accordance with the preceding paragraph (i) may transfer their shares within three (3) years to the employees of the financial holding company or the financial holding company's subsidiary(ies), (ii) may transfer the shares in accordance with the rights granted by Article 28-2, Paragraph 1, Subparagraph 2 of the Securities and Exchange Act, or (iii) may sell such shares on a stock exchange or over-the-counter market in exemption from the restrictions under Article 38 of the Act. Shares that are not timely transferred or sold within three (3) years shall be treated as unissued shares of the financial holding company and shall apply for an alteration of registration in respect of such shares accordingly.During the share transfer process of a financial institution, if the financial holding company to be established is an existing company, then the two preceding paragraphs shall apply mutatis mutandis to the investee enterprises of the existing company.With the exceptions of surplus earning distribution, legal reserve, or capital reserves being set aside as equity capital, the shares of a financial holding company held by financial institutions by means of the preceding three paragraphs shall not be entitled to other shareholders’ rights.