Financial Holding Company Act Article 47

At the end of each year, a financial holding company shall prepare consolidated financial statements, an annual report and a business report, and submit such documents, along with the resolutions for the surplus earnings distribution or loss make-up, and other particulars as designated by the competent authority to the competent authority within fifteen (15) days after the ratification of the same by a shareholders' meeting. The competent authority shall prescribe other particulars to be included in the annual report.A financial holding company shall publicly disclose its balance sheets, income statements, statements of changes in shareholders' equity, and statements of cash flows, and other particulars designated by the competent authority to be included in the financial statements described in the preceding paragraph in a local daily newspaper published in such financial holding company's place of business or by other means as designated by the competent authority. However, a financial holding company that has complied with Article 36 of the Securities and Exchange Act is exempt from the above disclosure requirement.The balance sheets, income statement, statements of changes in shareholders' equity and statements of cash flows included in the financial statement prescribed in Paragraph 1 shall be audited and certified by a certified public accountant.Where a financial institution converts into a financial holding company, its undistributed surplus earnings will be listed as the capital reserve of the financial holding company after the conversion, but its distribution will not be restricted by Article 241, Paragraph 1 of the Company Act.Where a financial institution has issued preferred shares, upon the conversion of such a financial institution into a financial holding company, the financial holding company shall assume the rights and obligations of such special shares, and, in the year that such financial institution converts into a financial holding company, the financial holding company shall distribute dividends in accordance with the statements and books prepared by its board of directors and audited by its supervisors for that year and Articles 228 through 231 of the Company Act shall not apply thereto. Article 2, Paragraph 1, Subparagraph 1, of the Employee Welfare Fund Act shall not apply to a financial holding company that has converted from a financial institution.