The FSC announced the upcoming amendments to the “Regulations Governing Securities Investment Trust Fund Beneficiaries Meetings”. The Amendment and the introduction of electronic transmission as one of the means to exercise voting rights is expected to facilitate the holding of the beneficiaries’ meeting of securities investment trust funds. Key points of the amended provisions are as follows:

1.Those who have the right to convene a beneficiaries’ meeting may list “electronic transmission” as one of the means to exercise voting rights, and the method of exercising voting rights shall be specified in the meeting notice; matters related to electronic voting shall be outsourced to the qualified institution in order to ensure the impartiality and independence of electronic voting (Article 7 after amendment).

2.The methods of exercising the beneficiary''s voting rights are specified for beneficiaries’ meetings held in written form. In addition to the exercise of voting rights in written form as originally stipulated, the voting rights may be exercised by electronic transmission, and the method of cancellation of the expression of intention and the method of handling multiple expressions of intention are regulated (Article 8 after amendment).

3.The method of exercising the beneficiary''s voting rights are specified for beneficiaries’ meetings held by attendance in person. In addition to the exercise of voting rights in person or by proxy as originally stipulated, the voting rights may be exercised by electronic transmission, and the method of cancellation of the expression of intention and the method of handling multiple expressions of intention are regulated (Article 9 after amendment).

4.In order to make the operation of exercising voting rights by electronic transmission at the beneficiaries’ meeting more definite, the requirement that the beneficiary shall express his/her intention in accordance with the format made by the convener, the deadline for delivery of the expression of intention, the effect of non-expression of intention, and the method of handling the exercise of voting rights by electronic transmission on extraordinary motions and amendments to the original motions are stipulated (Article 9-1 after amendment).

Contact unit: Securities Investment Trust and Consulting Division, Securities and Futures Bureau

Tel: (02) 2774-7320 Section Chief Lin

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