Financial Holding Company Act Article 53

If any of a financial holding company's bank subsidiary, insurance subsidiary or securities subsidiary is ordered to increase its capital, such financial holding company shall raise funds for such subsidiary in proportion to the financial holding company's shareholding in such subsidiary.If the accumulated losses of a financial holding company exceed one-third (1/3) of such financial holding company's paid-in capital, such financial holding shall immediately convene a meeting of its board of directors, notify its supervisors [that they are required] to attend such meeting, and thereafter report the resolutions approved at such meeting, the financial holding company's financial statements, the reasons for such losses, and a plan to improve [the business operations] to the competent authority.Where the circumstances described in the preceding paragraph exist, the competent authority shall order the financial holding company to replenish its capital within a prescribed period of time.In order to replenish its capital as described in the preceding paragraph, a financial holding company may, with the competent authority’s approval, during a fiscal year, reduce its capital and cancel outstanding shares to the extent of its losses, including losses incurred in the current fiscal year, and raise new capital in an amount equal to the reduced capital in order to replace the canceled shares.