First Commercial Bank Launches Charitable Stock Trust to Support Drug Research

First Commercial Bank and Chen Yung-shun, honorary chairman of the Chinese Jing Kang Pharmaceutical Foundation, have structured a charitable stock trust that separates ownership of the principal from the charitable use of its proceeds. Chen retains the beneficial interest in the stock principal, while dividends and other income generated over 30 years will be donated to the foundation, creating a continuing source of funding for new-drug research and talent development.

Under the latest partnership, First Commercial Bank will oversee and manage the trust. The foundation must use the income exclusively for biotech drug research and the development of research talent. The trust has a specified term of 30 years. As of the publication of the related reports, the parties had not disclosed the contract’s signing or effective date, the number or market value of the shares placed in trust, or the estimated annual dividends and donations.