The Banking Act of The Republic of China Article 50

A bank, before distributing its after-tax profits, shall set aside thirty percent (30%) of them as a legal reserve. Before the amount accumulated reaches that of the bank's paid-in capital, the maximum profit distribution in cash shall not exceed fifteen percent (15%) of the bank's paid-in capital.Where the amount of a bank’s legal reserve reaches that of a bank's paid-in capital or the bank is sound in finance and business and has set aside legal reserve in compliance with the Company Act, the restrictions prescribed in the preceding paragraph shall not apply.In addition to the legal reserve, a bank may set aside a special reserve in accordance with its Articles of Incorporation or a resolution of its shareholders’ meeting.Standards governing the capital adequacy ratio, asset quality, and compliance required for being sound in finance and business prescribed in Paragraph 2 shall be prescribed by the competent authority.