Act of Endowment Chiu Hai-Shui Foundation

1st edition: 1990/01/01
2nd edition: revised on 1993/08/14
3rd edition: revised on 2002/01/12
Current edition: revised on 2002/11/24

  1. Chiu Hai-Shui Foundation (the “Foundation”) was established in accordance with the ROC Civil Law and the Supervision Regulations on Incorporated Foundations, Ministry of Education, ROC.
  2. The Foundation’s mission is to promote governmental education policies, encourage academic research and support exceptional students in need of financial help. In accordance with related laws; the Foundation will conduct the following:
    1. sponsoring academic research;
    2. financing exceptional students who intend to pursue higher education in Taipei County;
    3. sponsoring or organizing social welfare events;
    4. organize activities in line with the Foundation’s mission.
  3. The establishing fund was NTD$60,000,000.00, donated by Mr. Chiu Hai-Shui. The Foundation accepts donations.
  4. The Foundation is located at 15F.-6, No.191, Sec. 2, Jhongyang Rd., Tucheng City, Taipei County 236, Taiwan (R.O.C.).
  5. The Foundation has appointed a board of directors (the “Board”) which is responsible for:
    1. fund raising and management;
    2. organizational objectives;
    3. organizational structure and management;
    4. composing sponsorship rules;
    5. annual budget management;
    6. director appointment;
    7. other important affairs.
  6. The Board is composed of 13 directors. The directors of the first term were selected and appointed by Mr. Chiu Hai-Shui. From the second term onward, new directors will be elected and appointed by existing directors. Directors are not entitled to receive compensation.
  7. Each term for the directors is three years. A director may serve more than one term consecutively. Should a vacancy occur during a term, the Board may elect a new director whose term may end at the next directorial general election. The Board should elect the new directors one month before each term ends, and transit the seats within the required time frame.
  8. The Board shall elect five managing directors among the 13 directors, and the managing directors shall elect one chairman among the five managing directors. The chairman represents the Foundation on public occasions. Should the chairman be unable to carry out his duties, the remaining managing directors shall elect a deputy chairman from among the managing directors.
  9. The Board meeting convenes every six months or more frequently, and the Board may call for additional meetings at anytime.
    A meeting may be convened only if over half of the directors are present. A proposal may be approved only if over half of the directors are present for the vote, and the proposal may be executed only if approved by the governmental authorities in charge.
    An important proposal may be approved if over half of the 13 directors vote for it, while over two thirds of the 13 directors are present for the vote. Such proposals include:
    1. revision of the Act of Endowment or other regulations that govern the Foundation; (The Foundation may request the court to make necessary disposition, in accordance with Article 62 and Article 63 of the ROC Civil Law.)
    2. imposing disposition or creating a right in rem over a real property;
    3. appointment or removal of the chairman or any directors;
    4. dissolution of the Foundation.
    Meeting notices and scheduled proposals should be sent to all directors and the governmental authorities in charge 10 days before a meeting. It is also required to invite a representative from the authorities in charge, and send the meeting memorandum to the authorities in charge.
  10. A fiscal year for the Foundation is from January 01 to December 31. By the end of each January, the Board shall present to the authorities in charge the following:
    1. annual accounting report and annual operation results;
    2. annual budget plan and annual operation plan;
    3. list of properties, which shall include annual donation list and photocopies of the donation receipts.
  11. Any activities not included in the annual operation plan must be in accordance with the second article of this Act of Endowment and must be reported to the authorities in charge before the activities take place.
  12. Expenses of any operations the Foundation undertakes shall be paid by the interest revenue of the establishing fund or by new donations other than the establishing fund. Only if the Board and the authorities in charge approve, the Foundation may allocate to the establishing fund, the organizational properties, or new donations which have been merged into the establishing fund.
  13. The Foundation may re-elect current directors or make any fundamental changes or disposition through a court, only if the Board and the authorities in charge approve.
  14. The Foundation operates permanently. However, if there is an inevitable dissolution, the remaining assets do not belong to any individuals or private organizations, but to the local government where the Foundation is located.
  15. This Act of Endowment was last revised on November 24, 2002. Should any incidents not regulated in this Act of Endowment occur, such incidents shall be bound by applicable laws.