<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant /X/
Filed by a party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
/X/ Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to 240.14a-11(c) or 240.14a-12
THE TAIWAN EQUITY FUND, INC.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/X/ No fee required.
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
and 0-11
(1) Title of each class of securities to which transaction applies:
------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
------------------------------------------------------------------------
(5) Total fee paid:
------------------------------------------------------------------------
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
------------------------------------------------------------------------
(3) Filing Party:
------------------------------------------------------------------------
(4) Date Filed:
------------------------------------------------------------------------
<PAGE>
THE TAIWAN EQUITY FUND, INC.
C/O DAIWA SECURITIES TRUST COMPANY
ONE EVERTRUST PLAZA
JERSEY CITY, NEW JERSEY 07302
(800) 933-3440
April 13, 1998
Dear Stockholders:
The Annual Meeting of Stockholders of The Taiwan Equity Fund, Inc. (the
"Fund") will be held at 11:30 A.M., New York time, on Friday, June 5, 1998, at
the offices of Daiwa Securities America Inc., Financial Square, 32 Old Slip,
14th Floor, New York, New York 10005. A Notice and Proxy Statement regarding the
meeting, a proxy card for your vote at the meeting, and a postage prepaid
envelope in which to return your proxy are enclosed.
At the Annual Meeting, the stockholders will (i) elect one Class I director
and one Class III director, and (ii) consider the ratification of the selection
of Price Waterhouse LLP as independent accountants. In addition, the
stockholders who will be present at the Annual Meeting will hear an investment
report on the Fund and will have an opportunity to discuss matters of interest
to them.
If you will not be able to attend the Annual Meeting in person, please take
the time now to review the enclosed materials and vote your shares by proxy.
YOUR VOTE IS IMPORTANT.
The Board recommends that the stockholders vote in favor of each of the
foregoing matters.
Respectfully,
/s/ Shuichi Komori
Shuichi Komori
CHAIRMAN OF THE BOARD
STOCKHOLDERS ARE STRONGLY URGED TO PROMPTLY SIGN AND MAIL THE ACCOMPANYING PROXY
IN THE ENCLOSED RETURN ENVELOPE TO INSURE A QUORUM AT THE MEETING. YOUR VOTE IS
IMPORTANT.
<PAGE>
THE TAIWAN EQUITY FUND, INC.
----------
NOTICE OF THE ANNUAL MEETING OF STOCKHOLDERS
JUNE 5, 1998
------------------------
To the Stockholders of
The Taiwan Equity Fund, Inc.:
NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders of The Taiwan
Equity Fund, Inc. (the "Fund") will be held at the offices of Daiwa Securities
America Inc., Financial Square, 32 Old Slip, 14th Floor, New York, New York
10005, on Friday, June 5, 1998, at 11:30 A.M., New York time, for the following
purposes:
1. To elect one Class I director to serve for a term expiring on the date on
which the Annual Meeting of Stockholders is held in the year 1999 and one
Class III director to serve for a term expiring on the date on which the
Annual Meeting of Stockholders is held in the year 2001.
2. To ratify or reject the selection of Price Waterhouse LLP as independent
accountants of the Fund for its fiscal year ending December 31, 1998.
3. To transact such other business as may properly come before the meeting
or any adjournments thereof.
The Board of Directors has fixed the close of business on March 17, 1998 as
the record date for the determination of stockholders entitled to notice of and
to vote at the meeting or any adjournments thereof.
You are cordially invited to attend the meeting. Stockholders who do not
expect to attend the meeting in person are requested to complete, date and sign
the enclosed form of proxy and return it promptly in the envelope provided for
that purpose. You may nevertheless vote in person at the meeting if you choose
to attend. Your vote is important. The enclosed proxy is being solicited by the
Board of Directors of the Fund.
By order of the Board of Directors,
Lawrence Jacob
SECRETARY
April 13, 1998
<PAGE>
THE TAIWAN EQUITY FUND, INC.
----------
PROXY STATEMENT
------------------------
INTRODUCTION
This Proxy Statement is furnished in connection with the solicitation of
proxies by the Board of Directors of THE TAIWAN EQUITY FUND, INC. (the "Fund")
for use at the Annual Meeting of Stockholders, to be held at the offices of
Daiwa Securities America Inc., Financial Square, 32 Old Slip, 14th Floor, New
York, New York 10005, on Friday, June 5, 1998, at 11:30 A.M., New York time, and
at any adjournments thereof.
This Proxy Statement and the form of proxy are being mailed to stockholders
on or about April 13, 1998. Any stockholder giving a proxy in advance of the
Annual Meeting has the power to revoke it by mail (addressed to the Secretary,
The Taiwan Equity Fund, Inc., c/o Daiwa Securities Trust Company, One Evertrust
Plaza, 9th Floor, Jersey City, New Jersey 07302) or in person at the meeting, by
executing a superseding proxy or by submitting a notice of revocation to the
Fund. All properly executed proxies received in time for the meeting will be
voted as specified in the proxy or, if no specification is made, for each
proposal referred to in this Proxy Statement. Abstentions and broker non-votes
are each included in the determination of the number of shares present at the
meeting.
THE FUND WILL FURNISH, WITHOUT CHARGE, A COPY OF ITS ANNUAL REPORT FOR ITS
FISCAL YEAR ENDED DECEMBER 31, 1997 TO ANY STOCKHOLDER REQUESTING SUCH REPORT.
REQUESTS FOR THE ANNUAL REPORT SHOULD BE MADE BY WRITING TO THE TAIWAN EQUITY
FUND, INC., C/O DAIWA SECURITIES TRUST COMPANY, ONE EVERTRUST PLAZA, 9TH FLOOR,
JERSEY CITY, NEW JERSEY 07302, ATTENTION: SHAREHOLDER RELATIONS, OR BY CALLING
(800) 933-3440 OR (201) 915-3020.
The Board of Directors has fixed the close of business on March 17, 1998 as
the record date for the determination of stockholders entitled to notice of and
to vote at the meeting and at any adjournments thereof. Stockholders on the
record date will be entitled to one vote for each share held, with no shares
having cumulative voting rights. As of the record date, the Fund had outstanding
4,507,318 shares of common stock. The following chart sets forth, to the best
knowledge and belief of the management of
1
<PAGE>
the Fund, certain information regarding the beneficial ownership of the Fund's
shares as of March 17, 1998 by each person known by the Fund to be the
beneficial owner of more than 5% of the outstanding shares:
<TABLE>
<CAPTION>
SHARES PERCENT
NAME AND ADDRESS BENEFICIALLY OF
OF BENEFICIAL OWNER OWNED (1) CLASS
- ---------------------------------------- ------------ -------
<S> <C> <C>
City of London Investment Group PLC 1,125,300(2) 25%
10 Eastcheap
London EC3M IAJ
England
President and Fellows of Harvard 306,200(3) 6.8%
College
c/o Harvard Management Company, Inc.
600 Atlantic Avenue
Boston, MA 02210
The Harvard University Master Trust 28,000(3) 0.6%
Fund
1350 Massachusetts Avenue
Holyoke Center, Room 340
Cambridge, MA 02138
Deep Discount Advisors, Inc. 267,500(4) 5.9%
Ron Olin Investment Management
Company
One West Pack Square, Suite 777
Asheville, NC 28801
</TABLE>
- ------------------------
(1) Beneficial share ownership is determined pursuant to Rule 13d-3 under the
Securities Exchange Act of 1934. Accordingly, a beneficial owner of a
security includes any person who, directly or indirectly, through any
contract, arrangement, understanding, relationship or otherwise has or
shares the power to vote such security or the power to dispose of such
security.
(2) The above information is based on copies of a statement on Schedule 13G
filed with the SEC on February 5, 1998, which indicates that City of London
Investment Group PLC has sole voting and dispositive power with respect to
all 1,125,300 shares.
(3) The above information is based on copies of a statement on Schedule 13G
filed with the SEC on February 12, 1998, which indicates that the President
and Fellows of Harvard College and The Harvard University Master Trust Fund
have sole voting and dispositive power with respect to 306,200 shares and
28,000 shares, respectively.
(4) The above information is based on copies of a statement on Schedule 13G
filed with the SEC on December 29, 1997, which indicates that Deep Discount
Advisors, Inc. and Ron Olin Investment Management Company have shared voting
and dispositive power with respect to 206,000 shares and 61,500 shares,
respectively.
2
<PAGE>
Management of the Fund knows of no business other than that mentioned in
Items 1 and 2 of the Notice of Meeting which will be presented for consideration
at the meeting. If any other matter is properly presented, it is the intention
of the persons named in the enclosed proxy to vote in accordance with their best
judgment.
The Board of Directors recommends that the stockholders vote in favor of
each of the matters mentioned in Items 1 and 2 of the Notice of Meeting.
(1) ELECTION OF DIRECTORS
Persons named in the accompanying form of proxy intend in the absence of
contrary instructions to vote all proxies for the election of the two nominees
listed below as directors of the Fund:
<TABLE>
<CAPTION>
CLASS I CLASS III
- -------------------- --------------------
<S> <C>
Sadamu Tsuneishi Christina Y. Liu
</TABLE>
to serve for terms expiring on the date of the Annual Meeting of Stockholders as
follows: Class I in the year 1999 and Class III in the year 2001, or until their
successors are elected and qualified. If any such nominee should be unable to
serve, an event that is not now anticipated, the proxies will be voted for such
person, if any, as shall be designated by the Board of Directors to replace any
such nominee. The election of each director will require the affirmative vote of
a majority of the votes cast at the meeting. For this purpose, abstentions and
broker non-votes will not be counted as votes cast at the meeting.
At their December 4, 1997 meeting, the Board of Directors elected Mr.
Tsuneishi to fill the vacancy created by the resignation of Mr. Masaru Arai,
whose resignation was effective as of December 1997. Mr. Arai had served as a
Class I director and Mr. Tsuneishi is therefore standing for election as a Class
I director. Although the terms of the Fund's Class I directors does not expire
until the date on which the Annual Meeting of Stockholders is held in the year
1999, Maryland law and the Fund's By-laws require a director, regardless of
Class, who is elected by the Board of Directors to fill a vacancy to stand for
election at the next Annual Meeting of Stockholders.
INFORMATION CONCERNING NOMINEES AND DIRECTORS
The following table sets forth information concerning each of the nominees
as a director of the Fund, as well as the other current directors of the Fund.
Each of the nominees is now a director of the Fund and has consented to be named
in this Proxy Statement and to serve as a director of the Fund if elected.
3
<PAGE>
NOMINEES
<TABLE>
<CAPTION>
PRESENT OFFICE WITH THE
FUND, IF ANY, PRINCIPAL OCCUPATION
EMPLOYMENT DURING PAST SHARES
FIVE YEARS AND BENEFICIALLY
NAME (AGE) AND ADDRESS DIRECTORSHIPS IN DIRECTOR OWNED FEBRUARY PERCENT OF
OF NOMINEES/DIRECTORS PUBLICLY HELD COMPANIES SINCE 28, 1998(+) CLASS
----------------------------------------- ---------------------------------------- ---------- -------------- ----------
<S> <C> <C> <C> <C> <C>
Christina Y. Liu (43) Professor, Department of Finance, 1994 None --
2,15 F No. 155 National Taiwan University, since 1993;
Shin-Yin Road Chairperson, Department of Finance,
Section 4 National Taiwan University, from 1994 to
Taipei, Taiwan 1996; Associate Professor, Department of
Economics and Finance, City University
of New York, from 1992 to 1993.
* Sadamu Tsuneishi (50) President and Director of the Fund; 1997 None --
14/F, No. 200, Section 1 Managing Director, Daiwa Asset
Kee-Lung Road, Taipei Management (H.K.) Limited, since October
Taiwan 1997; General Manager, Accounting
Section, General Affairs Department,
Daiwa Asset Management Co. Ltd., from
May 1995 to July 1997; Fund Manager,
Overseas Investment Department, Daiwa
Asset Management Co. Ltd., from July
1988 to May 1995.
OTHER CURRENT DIRECTORS
Martin J. Gruber (60) Professor of Finance, Leonard N. Stern 1994 1,000 **
229 South Irving Street School of Business, New York University,
Ridgewood, NJ 07450 since 1965; Director, Cowen Income &
Growth Fund Inc., since 1986; Director,
Cowen Opportunity Fund, since 1987;
Director, Standby Reserve Fund Inc.,
since 1985; Director, Standby Tax Exempt
Reserve Fund Inc., since 1986; Trustee,
BT Pyramid Fund, since 1992; Trustee, BT
Leadership Trust, since 1993; Director,
The Japan Equity Fund, Inc., since 1992;
Trustee, T.I.A.A., since 1996.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
PRESENT OFFICE WITH THE
FUND, IF ANY, PRINCIPAL OCCUPATION
EMPLOYMENT DURING PAST SHARES
FIVE YEARS AND BENEFICIALLY
NAME (AGE) AND ADDRESS DIRECTORSHIPS IN DIRECTOR OWNED FEBRUARY PERCENT OF
OF NOMINEES/DIRECTORS PUBLICLY HELD COMPANIES SINCE 28, 1998(+) CLASS
----------------------------------------- ---------------------------------------- ---------- -------------- ----------
<S> <C> <C> <C> <C> <C>
* Shuichi Komori (54) Chairman of the Board of the Fund; 1994 None --
Financial Square Chairman, since 1994, The Thai Capital
32 Old Slip, 14th Floor Fund, Inc.; Chairman, since 1995, The
New York, NY 10005 Singapore Fund, Inc.; Chairman and Chief
Executive Officer, Daiwa Securities
America Inc., since 1994; Director,
Daiwa Securities Co. Ltd., since 1991.
Oren G. Shaffer (55) Executive Vice President and Chief 1994 5,000 **
30 S. Wacker Drive, 38th Floor Financial Officer of Ameritech
Chicago, IL 60606 Corporation, since 1994; President and
Director of VIRGOCAP INC., from 1992 to
1994; Executive Vice President, Chief
Financial Officer and Director, The
Goodyear Tire and Rubber Company, from
1984 to 1992; Director, Sunshine Mining
Company, since 1992; Director, Hygenic
Corporation, since 1993; Director, The
Singapore Fund, Inc., since 1997.
</TABLE>
- ------------------------
+ The information as to beneficial ownership is based on statements furnished
to the Fund by the nominees and directors.
* Directors so noted are deemed by the Fund's counsel to be "interested
persons" (as defined in the U.S. Investment Company Act of 1940, as amended
(the "1940 Act") ) of the Fund or of the Fund's investment manager or
investment adviser. Mr. Komori is deemed an interested person because of his
affiliation with Daiwa Securities America Inc., an affiliate of the Fund's
investment manager, Daiwa Asset Management (H.K.) Ltd. (the "Investment
Manager"), or because he is an officer of the Fund, or both. Mr. Tsuneishi
is an interested person because of his affiliation with the Fund's
Investment Manager, or because he is an officer of the Fund, or both.
** Represented less than 1% of the outstanding shares at February 28, 1998.
The Fund's Board of Directors held four regular meetings during the fiscal
year ended December 31, 1997. Each incumbent director attended at least
seventy-five percent of the aggregate number of meetings of the Board of
Directors.
The Fund's Board of Directors has an Audit Committee which is responsible
for reviewing financial and accounting matters. The current members of the Audit
Committee are Dr. Gruber,
5
<PAGE>
Mr. Shaffer and Dr. Liu. The Audit Committee met twice during the fiscal year
ended December 31, 1997. All of the incumbent members of the Audit Committee
attended the meetings held during the fiscal year. The Fund has neither a
compensation nor a nominating committee.
Section 16(a) of the U.S. Securities Exchange Act of 1934, as amended,
requires the Fund's officers and directors, and persons who own more than ten
percent of a registered class of the Fund's equity securities, to file reports
of ownership and changes in ownership with the Securities and Exchange
Commission and the New York Stock Exchange, Inc. The Fund believes that its
officers and directors have complied with all applicable filing requirements.
OFFICERS OF THE FUND
Mr. Komori (age 54) has been Chairman of the Board of the Fund since July
1994 (see information provided above).
Mr. Tsuneishi (age 50) has been President of the Fund since December 1997
(see information provided above).
Daniel F. Barry (age 51), Vice President of the Fund since July 1994, has
been Senior Vice President of Daiwa Securities Trust Company ("DSTC"), the
Fund's Administrator and Custodian, since June 1993. From June 1990 to June
1993, he was Vice President, Mutual Fund Administration of DSTC.
Lawrence Jacob (age 53), Secretary of the Fund since July 1994, has been
Senior Vice President since November 1985, and Assistant Secretary since
February 1986, of Daiwa Securities America Inc.
Edward J. Grace (age 51), Treasurer of the Fund since July 1994, has been a
Vice President of DSTC since December 1992 and Assistant Vice President of DSTC
from 1989 to December 1992.
Laurence E. Cranch (age 51), Assistant Secretary of the Fund since December
1994, has been a partner in the law firm of Rogers & Wells LLP since 1980.
TRANSACTIONS WITH AND REMUNERATION OF OFFICERS AND DIRECTORS
The aggregate fee remuneration for directors not affiliated with Daiwa Asset
Management (H.K.) Ltd. (the "Investment Manager") or National Capital Management
Corp. (the "Investment Adviser") was U.S. $27,600 during the fiscal year ended
December 31, 1997. Each such non-affiliated director currently receives fees,
paid by the Fund, of U.S. $750 for each directors' meeting attended in person or
by telephone, U.S. $600 for each audit committee meeting attended in person or
by telephone and an annual fee of U.S. $5,000. The officers and interested
directors of the Fund received no compensation from the Fund.
DSTC, which pays the compensation and certain expenses of the officers of
DSTC who serve as officers of the Fund, receives an administration and custodian
fee.
Set forth below is a chart showing the aggregate fee compensation paid by
the Fund (in U.S. dollars) to each of its directors during the fiscal year ended
December 31, 1997, as well as the total fee compensation paid to each director
of the Fund by the Fund and by other investment companies
6
<PAGE>
advised by the Investment Manager, the Investment Adviser or their respective
affiliates (collectively, the "Fund Complex") for their services as directors of
such investment companies during their respective fiscal years:
<TABLE>
<CAPTION>
PENSION OR
RETIREMENT
BENEFITS TOTAL COMPENSATION
AGGREGATE ACCRUED AS PART FROM FUND AND FUND
COMPENSATION OF COMPLEX PAID TO
NAME OF DIRECTOR FROM FUND FUND EXPENSES DIRECTORS
- ----------------------- ------------- --------------- ------------------
<S> <C> <C> <C>
Shuichi Komori*+ $ 0 None $ 0
Sadamu Tsuneishi+ 0 None 0
Masaru Arai+ 0 None 0
Oren G. Shaffer* 9,200 None 9,200
Martin G. Gruber* 9,200 None 18,400
Christina Y. Liu 9,200 None 9,200
</TABLE>
- ------------------------
* Also serves as a director of other investment companies for which an
affiliate of Daiwa Asset Management (H.K.) Limited, the Fund's investment
manager, serves as investment adviser.
+ Mr. Komori and Mr. Tsuneishi, and his predecessor, Mr. Arai, who are
affiliated with the Investment Manager and are considered "interested
persons" of the Fund, do not receive any fee compensation from the Fund for
their services as directors. Mr. Tsuneishi was elected to the Board of
Directors in December 1997 to replace Mr. Arai, who resigned.
(2) RATIFICATION OR REJECTION OF SELECTION
OF INDEPENDENT ACCOUNTANTS
At a meeting to be held on June 5, 1998, the Board of Directors of the Fund,
including a majority of the directors who are not "interested persons" of the
Fund (as defined in the 1940 Act), will consider the selection of Price
Waterhouse LLP to act as independent accountants for the Fund for the fiscal
year ending December 31, 1998, subject to stockholder approval. The Fund knows
of no direct financial interest or material indirect financial interest of that
firm in the Fund. One or more representatives of Price Waterhouse LLP are
expected to be present at the Annual Meeting and will have an opportunity to
make a statement if they so desire. Such representatives are expected to be
available to respond to appropriate questions from stockholders.
This selection of independent accountants is subject to the ratification or
rejection of the Fund's stockholders at the meeting. Ratification of the
selection of the independent accountants will require the affirmative vote of a
majority of the votes cast at the meeting. For this purpose, abstentions and
broker non-votes will not be counted as votes cast at the meeting.
MISCELLANEOUS
Proxies will be solicited by mail and may be solicited in person or by
telephone or telegraph by officers of the Fund or personnel of DSTC. The Fund
has retained Corporate Investor Communications, Inc. to assist in the proxy
solicitation. The fee for such services is estimated at U.S. $3,000, plus
reimbursement of expenses. The expenses connected with the solicitation of these
proxies and with any further proxies which may be solicited by the Fund's
officers or agents in person, by telephone or by telegraph will be borne by the
Fund. The Fund will reimburse banks, brokers, and other persons
7
<PAGE>
holding the Fund's shares registered in their names or in the names of their
nominees for their expenses incurred in sending proxy material to and obtaining
proxies from the beneficial owners of such shares.
It is important that you promptly submit your vote as a stockholder of the
Fund. In the event that sufficient votes in favor of any proposal set forth in
the Notice of this meeting are not received by June 5, 1998, the persons named
as attorneys in the enclosed proxy may propose one or more adjournments of the
meeting to permit further solicitation of proxies. Any such adjournment will
require the affirmative vote of the holders of a majority of the shares present
in person or by proxy at the session of the meeting to be adjourned. The persons
named as attorneys in the enclosed proxy will vote in favor of such adjournment
those proxies which they are entitled to vote in favor of the proposal for which
further solicitation of proxies is to be made. They will vote against any such
adjournment those proxies required to be voted against such proposal. The costs
of any such additional solicitation and of any adjourned session will be borne
by the Fund.
STOCKHOLDER PROPOSALS
Any proposal by a stockholder of the Fund intended to be included in the
proxy materials for the 1999 meeting of stockholders of the Fund must be
received by the Fund, c/o Daiwa Securities Trust Company, One Evertrust Plaza,
9th Floor, Jersey City, New Jersey 07302, not later than December 10, 1998.
The Fund's By-laws require that any proposal by a stockholder of the Fund
intended to be presented at a meeting of stockholders must be received by the
Fund, c/o Daiwa Securities Trust Company, One Evertrust Plaza, 9th Floor, Jersey
City, New Jersey 07302, not earlier than 90 days prior and not later than 60
days prior to such meeting of stockholders.
By order of the Board of Directors,
Lawrence Jacob
SECRETARY
One Evertrust Plaza
Jersey City, New Jersey 07302
April 13, 1998
SKU# TWCFD-PS-98
8
<PAGE>
THE TAIWAN EQUITY FUND, INC.
C/O DAIWA SECURITIES TRUST COMPANY
ONE EVERTRUST PLAZA, JERSEY CITY, NEW JERSEY 07302
PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS FOR THE
ANNUAL MEETING OF STOCKHOLDERS ON JUNE 5, 1998
The undersigned stockholder of The Taiwan Equity Fund, Inc. (the "Fund")
hereby appoints Daniel F. Barry, Lawrence Jacob and Edward J. Grace, or any of
them, proxies of the undersigned, with full power of substitution, to vote and
act for and in the name and stead of the undersigned at the Annual Meeting of
Stockholders of the Fund to be held at the offices of Daiwa Securities America
Inc., Financial Square, 32 Old Slip, 14th Floor, New York, New York 10005, on
June 5, 1998 at 11:30 a.m., New York time, and at any and all adjournments
thereof, according to the number of votes the undersigned would be entitled to
cast if personally present.
The shares represented by this proxy will be voted in accordance with
instructions given by the undersigned stockholder, but if no instructions are
given, this proxy will be voted in favor of proposals 1 and 2 as set forth in
this proxy and, in the discretion of such proxies, upon such other business as
may properly come before the meeting or any adjournments thereof. The
undersigned hereby revokes any and all proxies heretofore given by the
undersigned with respect to such shares. The undersigned acknowledges receipt
of the Proxy Statement dated April 13, 1998.
--------------------------------------------------------------------------
PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE
ENCLOSED POSTAGE-PAID ENVELOPE.
--------------------------------------------------------------------------
Please sign exactly as your name(s) appear(s) on the books of the Fund. Joint
owners should each sign. Trustees and other fiduciaries should indicate the
capacity in which they sign, and where more than one name appears, a majority
must sign, if a corporation, the signature should be that of an authorized
officer who should indicate his or her title.
- -----------------------------------------------------------------------------
HAS YOUR ADDRESS CHANGED? DO YOU HAVE ANY COMMENTS?
- ------------------------------------- -------------------------------------
- ------------------------------------- -------------------------------------
- ------------------------------------- -------------------------------------
THE TAIWAN EQUITY FUND, INC.
C/O DAIWA SECURITIES TRUST COMPANY
ONE EVERTRUST PLAZA, JERSEY CITY, NEW JERSEY 07302
PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS FOR THE
ANNUAL MEETING OF STOCKHOLDERS ON JUNE 5, 1998
The undersigned stockholder of The Taiwan Equity Fund, Inc. (the "Fund")
hereby appoints Daniel F. Barry, Lawrence Jacob and Edward J. Grace, or any of
them, proxies of the undersigned, with full power of substitution, to vote and
act for and in the name and stead of the undersigned at the Annual Meeting of
Stockholders of the Fund to be held at the offices of Daiwa Securities America
Inc., Financial Square, 32 Old Slip, 14th Floor, New York, New York 10005, on
June 5, 1998 at 11:30 a.m., New York time, and at any and all adjournments
thereof, according to the number of votes the undersigned would be entitled to
cast if personally present.
The shares represented by this proxy will be voted in accordance with
instructions given by the undersigned stockholder, but if no instructions are
given, this proxy will be voted in favor of proposals 1 and 2 as set forth in
this proxy and, in the discretion of such proxies, upon such other business as
may properly come before the meeting or any adjournments thereof. The
undersigned hereby revokes any and all proxies heretofore given by the
undersigned with respect to such shares. The undersigned acknowledges receipt
of the Proxy Statement dated April 13, 1998.
--------------------------------------------------------------------------
PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE
ENCLOSED POSTAGE-PAID ENVELOPE.
--------------------------------------------------------------------------
Please sign exactly as your name(s) appear(s) on the books of the Fund. Joint
owners should each sign. Trustees and other fiduciaries should indicate the
capacity in which they sign, and where more than one name appears, a majority
must sign, if a corporation, the signature should be that of an authorized
officer who should indicate his or her title.
- -----------------------------------------------------------------------------
HAS YOUR ADDRESS CHANGED? DO YOU HAVE ANY COMMENTS?
- ------------------------------------- -------------------------------------
- ------------------------------------- -------------------------------------
- ------------------------------------- -------------------------------------
<PAGE>
PLEASE MARK VOTES
/X/ AS IN THIS EXAMPLE
1. Election of one Class I director to
- --------------------------- serve for a term expiring on the date on
THE TAIWAN EQUITY FUND INC. which the Annual Meeting of Stockholders
- --------------------------- is held in the year 1999, and the election of
one Class III director to serve for a term
expiring on the date on which the Annual
Meeting of Stockholders is held in the year
2001.
Mark box at right if an
address change or / / With- For All
comment has been noted Class I: For hold Except
on the reverse side of Sadamu Tsuneishi
this card. / / / / / /
Class III:
Christina Y. Liu
NOTE: If you do not wish your shares voted
"For" a particular nominee, mark the "For
All Except" box and strike a line through
the name of the nominee in the list above.
For Against Abstain
2. The ratification of
the selection of Price / / / / / /
Waterhouse LLP as
independent accountants
of the Fund for the
fiscal year ending
December 31, 1998.
Please be sure to sign and
date this Proxy. Date -----------
RECORD DATE SHARES:
- -- Stockholder sign here -------- Co-owner sign here -------------
PLEASE MARK VOTES
/X/ AS IN THIS EXAMPLE
1. Election of one Class I director to
- --------------------------- serve for a term expiring on the date on
THE TAIWAN EQUITY FUND INC. which the Annual Meeting of Stockholders
- --------------------------- is held in the year 1999, and the election of
one Class III director to serve for a term
expiring on the date on which the Annual
Meeting of Stockholders is held in the year
2001.
Mark box at right if an
address change or / / With- For All
comment has been noted Class I: For hold Except
on the reverse side of Sadamu Tsuneishi
this card. / / / / / /
Class III:
Christina Y. Liu
NOTE: If you do not wish your shares voted
"For" a particular nominee, mark the "For
All Except" box and strike a line through
the name of the nominee in the list above.
For Against Abstain
2. The ratification of
the selection of Price / / / / / /
Waterhouse LLP as
independent accountants
of the Fund for the
fiscal year ending
December 31, 1998.
Please be sure to sign and
date this Proxy. Date -----------
RECORD DATE SHARES:
- -- Stockholder sign here -------- Co-owner sign here -------------
