Article 1
These Regulations are enacted pursuant to Article 66 of the Civil Associations Act and Article 72 of the Commercial Group Act.

Article 5
Accounting reports are prescribed as follows:
1. Final statements of income and expenditure;
2. Statements of income and expenditure in cash or statements of cash flows;
3. Balance sheets;
4. Property inventory;
5. Statements of fund income and expenditure.
Each group may also compile internal accounting reports by itself according to actual needs.
The formats and instructions for the statements listed in the first paragraph are provided in Annex 1.

Article 7
Accounting books are classified into the following categories:
1. Journals;
2. General ledgers;
3. Property registers;
4. Subsidiary ledgers;
5. Other accounting books.
Groups with an annual budget of no more than NT$ 3,000,000 may use journals only, and may prepare separate property registers for the acquisition or disposal of properties.
The formats for the accounting books listed in the first paragraph are provided in Annex 3.

Article 8
Accounting documents are classified into the following two categories:
1. Original document: proves the process of an accounting matter and is used as the foundation for preparing accounting vouchers.
2. Accounting voucher: proves the liabilities of accountants and is used as the foundation for bookkeeping.
Groups with an annual budget of no more than NT$ 3,000,000 may use original documents as the foundation for bookkeeping.

Article 9
Original documents include the following categories:
1. External documents: ones obtained from parties other than the group.
2. Outgoing documents: ones given to parties other than the group.
3. Internal documents: ones prepared and retained by the group.

Article 10
Accounting vouchers include the following categories:
1. Receipt voucher
2. Payment voucher
3. Transfer voucher
The formats for the accounting vouchers in the preceding paragraph are provided in Annex 4.

Article 12
The council of an industrial or commercial group shall compile an annual work report, a final statement of income and expenditures along with a statement of income and expenditures in cash or statement of cash flows, balance sheet, property inventory, and statement of fund income and expenditures within three months after the end of the financial year, and submit the same to the boards of supervisors (or supervisors) for audit. The boards of supervisors (or supervisors) shall issue audit reports and return such documents to the council. Once all documents are approved at a general meeting of members (member representatives), they shall be submitted to the competent authorities for review and recording before the end of May. If the general meeting of members (member representatives) cannot be convened on time for some reason, the documents shall be submitted to the competent authorities first and subsequently ratified at the general meeting.
Final statements amounting to NT$ 15,000,000 or higher may be audited by certified public accountants.

Article 16
Real property transactions of industrial and commercial groups concerning acquisition, sale, transfer or creation of other rights shall be approved at the general meetings of members (member representatives) in advance. They shall also be reported to the competent authorities for review and recording. However, acquisition of real property under abnormal circumstances shall be adopted at a joint meeting of directors and supervisors under the authorization of general meetings of members (member representatives). Once approved, the transactions shall subsequently be ratified at the general meetings of members (member representatives) and reported to the competent authorities for review and recording.

Article 17
The admission fee for members of industrial and commercial groups is prescribed in the constitution pursuant to the following standards and paid in full upon joining the groups:
1. In the case of type A annual membership fees without different classes, the admission fees collected shall not exceed fifty percent of the total type A annual membership fees.
2. In the case of type A annual membership fees for different classes, the admission fees collected shall not exceed fifty percent of the total type A annual membership fees for middle classes.

Article 18
The annual membership fees of industrial and commercial groups are classified into type A and type B pursuant to the following standards, and prescribed in the constitution to be paid monthly or in installments by members:
1. Type A annual membership fees: calculated based on capital, revenues, the number of production tools, the number of staff or product quantities according to law.
2. Type B annual membership fees: approved by competent authorities and calculated according to the classes of members or other methods when the admission fees and Type A annual membership fees are insufficient.

Article 19
The annual business and administrative expenses of industrial and commercial groups shall not be less than forty percent of the total expenditures. The groups shall recruit personnel based on their business needs.
Industrial and commercial groups shall compile compensation tables for council personnel in accordance with the annual budgets and submit the same to the councils for approval before implementing.
The formats of compensation tables for council personnel are provided in Annex 6.

Article 21
The funds of industrial and commercial groups and their provision criteria are stipulated as follows:
1. Reserve fund for council development: reserved at four to ten percent of the budgetary income every year unless a deficit occurs for the year.
2. Reserve fund for retirement: reserved at one or two months of gross salary of all council personnel every year.

Article 25
Except for working capital, the financial incomes of industrial and commercial groups shall be deposited in banks or post offices of Chunghwa Post Co. Ltd. It shall not be deposited in other public or private enterprises or with individuals. In principle, incomes shall be deposited immediately upon receipt.
The working capital set forth in the preceding paragraph shall not exceed NT$ 100,000. It shall be approved by the council and then kept by the financial personnel.
Daily expenditures of no more than NT$ 10,000 can be paid in cash from the working capital. The ones exceeding NT$ 10,000 shall be paid directly to the receivers by means of crossed order checks instead of being paid in cash.

Article 31
The files of industrial and commercial groups, including documents, accounting books and statements, shall be retained pursuant to the following rules:
1. Permanent retention:
A. Annual budget and final statements;
B. Collection, deposit, and withdrawal of various funds;
C. Property inventory, property registers, and statement of damaged and discarded properties;
D. Various property contracts and certificates of ownership;
E. Construction and repair of real properties;
F. Increase and decrease of properties and alteration of property ownerships;
G. Balance sheets;
H. Other financial archives that need to be retained permanently for inspection.
2. Retained for ten years:
A. Accounting books, vouchers, documents and memorandum books;
B. Journals, general ledgers and subsidiary ledgers;
C. Other financial archives that may be retained for inspection for ten years.
3. Retained for five years:
A. Various temporary documents;
B. Short-term loan cases;
C. Other financial archives that may be retained for inspection for five years.
4. Retained for three years: Various daily and monthly reports and their copies.
Upon expiration of the retention period, the financial files in all of the preceding subparagraphs may be destroyed after being verified by the board of supervisors. Under special circumstances, the retention period may be extended with the consent of the council and the board of supervisors, and shall be reported to the competent authorities for review and recording.

Article 33
Financial personnel of industrial and commercial groups shall have at least two guarantors when taking office and shall be held liable when there is financial loss due to incomplete handovers upon leaving the post.