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Chapter Law Content

Title: Regulations Governing Futures Trust Funds CH
Category: Financial Supervisory Commission(金融監督管理委員會)
Chapter 10:Beneficial Owners Meetings
Article 94
The exercise of rights of beneficial owners shall require resolutions of meetings of beneficial owners. However, this restriction does not apply to action taken solely for of the personal interest of a beneficial owner.
Article 95
The following matters shall be done by means of a resolution of a beneficial owners meeting, except where the competent authority has provided otherwise:
1.Changing the fund custodian.
2.Changing the futures trust enterprise.
3.Terminating the futures trust deed.
4.Increasing the management or custodial fees of the futures trust enterprise or fund custodian.
5.Materially amending the basic policies or scope of futures trading or investment in futures-related spot instruments by the futures trust fund.
6.Making other amendments to the futures trust deed with a material effect on the rights or interests of beneficial owners.
Article 96
When any event occurs that by law, regulation, or the futures trust deed requires a resolution of a beneficial owners meeting, the futures trust enterprise shall convene a beneficial owners meeting. When the futures trust enterprise is unable or fails to convene the meeting, it shall be convened by the fund custodian. When the fund custodian is unable or fails to convene the meeting, it shall be convened as provided in the futures trust deed or by the beneficial owners themselves. When all are unable or fail to convene the meeting, it shall be convened by a person appointed by the competent authority.
For beneficial owners to themselves convene a beneficial owners meeting, the beneficial owners who, for at least one continuous year, have held beneficial certificates representing beneficial units accounting for at least three percent of the total beneficial units of the fund issued and outstanding at the time of the proposal shall file a written application with the competent authority, stating the matters proposed and the reasons for convening the meeting, and convene the meeting after obtaining the competent authority's approval.
When a beneficial owners meeting is convened by a party other than the futures trust enterprise, then the futures trust enterprise, at the request of the fund custodian, the beneficial owners, or the person appointed by the competent authority shall provide any documents or materials necessary for convening the beneficial owners meeting.
Article 97
The competent authority shall prescribe the time limits, procedures, resolution methods, meeting protocol, and other matters for compliance in convening a beneficial owners meeting.
The competent authority may order the amendment of provisions of futures trust deeds regarding quorum requirements, the number of votes required to adopt a resolution, or methods of resolution as it deems necessary in order to protect the public interest or the interests of beneficial owners.
Article 98
The provisions of Article 6, paragraph 3, Article 16, Article 32, Article 36, paragraph 1 through 3, Articles 39 through 41, Article 42, paragraph 1, Articles 43 and 44, Article 45, paragraph 1 and 2, Article 51, Articles 52 through 59, and Article 65, paragraph 1, subparagraph 2 of the Trust Act shall not apply to a futures trust.
Article 21 of the Trust Enterprise Act shall not apply to a fund custodian.