Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 64

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 64
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declaration statement. For those foreign exchange transactions which are not related to the sales of goods or provision of services by
a company, ranging from NTD 500,000 to U. S.$50 million, such transaction shall be declared through filing a declaration statement,
and providing supporting documents, such as contracts or letters of approval, to the bank. For those foreign exchange transactions by
a company, which are not related to the sales of goods or provision of services, amounting more than USD 50 million, such transaction
shall be declared through filing a declaration statement, providing supporting documents to the bank, and obtaining the approval of the
Central Bank of Taiwan.

Though Taiwan government has
promulgated the Regulations Governing Foreign Exchange Control on July 2, 1997, pursuant to the Foreign Exchange Regulation Act,
the requirements for the government to implement those foreign exchange control measures should be subject to either of the following
conditions: (1) when the domestic or foreign economic disorder might endanger the stability of the domestic economy; and (2) when
this country suffers a severe balance of payments deficit. From the past history, Taiwan government only implemented those foreign exchange
control measures once in 1997 during the Asian Financial Crisis.

Regulations on Dividend Distribution

The principal regulations governing
dividend distribution is the Company Act. Pursuant to the Company Act, a Taiwan company may not pay dividends unless its losses have been
covered and statutory reserve funds, equaling 10% of a company’s after-tax net profits, have been set aside. However, in the
event that a company’s statutory reserve funds have reached the total amount of the company’s capital, the company does not
need to set aside any amounts for its statutory reserve funds. If a company has no net profits, in principle, it may not pay dividends.

Regulations on Employee Stock Incentive Plan

The principal regulations governing
dividend distribution is the Company Act. Pursuant to the Company Act, a Taiwan company may choose to implement the employee stock incentive
plan through five kinds of strategies: (1) employee stock compensation, (2) employee stock option certificates, (3) employee
subscription of new shares using cash as consideration, (4) treasury shares transferred to employees, (5) employee restricted
share units. After the amendment of the Company Act on August 1, 2018, transferring a company’s stocks to the employees of
the company’s parent company or its subsidiaries under the employee stock incentive plan is also