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Article 14-5
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If a company that has issued stock in accordance with this Act has established an audit committee, the following matters shall require the approval of one-half or more of all audit committee members and be submitted to the board of directors for a resolution, and the provisions of Article 14-3 shall not apply:<br/>1. Adoption or amendment of an internal control system pursuant to Article 14-1.<br/>2. Assessment of the effectiveness of the internal control system.<br/>3. Adoption or amendment, pursuant to Article 36-1, of handling procedures for financial or operational actions of material significance, such as acquisition or disposal of assets, derivatives trading, monetary loans to others, or endorsements or guarantees for others.<br/>4. A matter relating to the personal interest of a director.<br/>5. A material asset or derivatives trade.<br/>6. A material monetary loan, endorsement, or provision of guarantee.<br/>7. The offering, issuance, or private placement of any equity-type securities.<br/>8. The engagement, discharge, or compensation of an attesting CPA.<br/>9. The appointment or discharge of a financial, accounting, or internal auditing officer.<br/>10. Annual financial reports and second quarter financial reports that must be audited and attested by a CPA, which are signed or sealed by the chairperson, managerial officer, and accounting officer.<br/>11. Any other material matter so required by the company or the Competent Authority.<br/>With the exception of subparagraph 10, any matter under a subparagraph of the preceding paragraph that has not been approved by one-half or more of all audit committee members may be undertaken upon the approval of two-thirds or more of all directors, without regard to the restrictions of the preceding paragraph, and the resolution of the audit committee shall be recorded in the minutes of the directors meeting.<br/>If, for good cause, it is impossible to hold a meeting of the audit committee, the matters in the subparagraphs of paragraph 1 shall be adopted with the approval of two-thirds or more of all directors. However, the matters in paragraph 1, subparagraph 10 shall still require the opinion of the independent directors indicating their approval.<br/>A company that has established an audit committee is not subject to the provisions of Article 36, paragraph 1 requiring that its financial reports be recognized by the supervisors.<br/>"All audit committee members" and "all directors" as used in paragraphs 1 to 3 and the preceding article shall be calculated as the actual number of persons currently holding those positions.
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