When a company that is listed on the stock exchange or traded on the OTC market handles its own shareholder services, if it is deemed likely by any shareholder who has held 3 percent or more of the total issued shares of the company for a continuous period of one year or more, or by the Securities and Futures Investors Protection Center, that the company's handling of matters relating to shareholders meetings is detrimental to shareholder rights and interests, then that party, 10 days prior to the first day of the book closure period, may apply to the institution designated by this Commission to have the upcoming shareholders meeting handled by a shareholder services agent.
The company of the preceding paragraph, upon its receipt of the letter of approval from the institution designated by this Commission, and within the deadline specified by that institution, shall entrust matters relating to the holding of the upcoming shareholders meeting to a shareholder services agent, and shall submit the agreement entered into with that shareholder services agent to the institution designated by this Commission for recordation.
When the company fails to proceed as specified in the preceding paragraph, the institution designated by this Commission will designate a shareholder services agent to handle matters relating to the upcoming shareholders meeting. The centralized securities depository enterprise shall deliver the list of stock owners to the newly designated shareholder services agent within 3 days from the first day of the book closure period.
Fees for the handling of shareholders meeting matters by the agent designated pursuant to the preceding paragraph shall be borne by the company.
Within 3 days after its receipt of the letter of paragraph 2 indicating recordation, or the letter of paragraph 3 designating a shareholder services agent, the company shall report the matter to the stock exchange or the OTC securities exchange and publicly announce it, with a copy to this Commission.