The Credit Cooperatives Act Of The Republic Of China Article 23

The after-tax surplus of a credit cooperative shall first be used to make up the accumulated losses; the remainder shall then be appropriated or distributed in accordance with the following order of priorities:1. 40% or more thereof as legal surplus reserves;2. Dividends on membership shares, provided that no dividends shall be allocated if there is no surplus of the current year;3. 5% of the remainder, after deducting what is prescribed in the preceding Subparagraphs (1) and (2), as public welfare fund;4. remunerations for directors and supervisors, provided that they shall not exceed 5% of the legal surplus reserves of the current year; and5. Distributions to members on their transactions with the cooperative.