Employee Stock Subscription Program Under the Statute of Chunghwa Telecom Co., Ltd. and our articles of incorporation, we must reserve up to 10 to 15% of any  new shares for subscription by our employees whenever we issue new shares for cash, except for any issuances of restricted stock to  employees. Our consolidated subsidiary, Senao, is publicly traded on the Taiwan Stock Exchange and resolved to grant the stock options  plan for its employees to purchase common stock of Senao. As of December 31, 2010 and 2011, participants in Senao’s stock  incentive plan had outstanding stock options to purchase 5.1 million and 2.3  million  common shares of Senao, respectively.  The following table sets forth information known to us with respect to the beneficial ownership of our shares (i) as of April  1, 2012, the most recent practicable date and (ii) as of certain record dates in each of the preceding three years, for the stockholders  known by us to own at least 5.0% of our outstanding common shares. Beneficial ownership is determined in accordance with  Securities and Exchange Commission’s rules.  (1)  Includes shares held through the Ministry of Transportation and Communications and other government-controlled entities  The Ministry of Transportation and Communications owned 3,764,363,593, or 35.29%, 3,422,148,720, or 35.29%, and  2,737,718,976, or 35.29% of our outstanding common shares as of December 31, 2009, 2010 and 2011 respectively.  As of April 13, 2012, 29 record holders held 42,512,221 ADSs (each representing 10 ordinary shares), which represents  approximately 5.5% of our total outstanding ordinary shares. Because many of these ADSs were held by brokers or other nominees,  we cannot ascertain the exact number of beneficial shareholders with addresses in the United States.  We have not extended any loans or credit to any of our directors, supervisors or executive officers, and we have not provided  guarantees for borrowings by any of these persons. We have not entered into any fee-paying contract with any of these persons for  them to provide services not within his or her capacity as a director, supervisor or executive officer of our company, except that three  of our directors who are also our employees receive salaries from our company in their capacity as our employees.  Please refer to “Item 4. Information on the Company—A. History and Development of the Company” for a discussion of our  alliances, acquisitions and investments. Please refer to notes 1, 13 and 29 to our consolidated financial statements included elsewhere  in this annual report for descriptions of Chunghwa’s subsidiaries, investments accounted for using equity method, and related party  transactions.  On April 1, 2007, Chunghwa entered into an agreement with Senao making Senao the exclusive distributor of mobile handsets  to Chunghwa’s retail outlets. Under the terms of the agreement, Senao also provides mobile handset sales services in Chunghwa’s  retail outlets, exclusively sells Chunghwa’s SIM cards in Senao’s own retail stores, and gets commission, subsidies of handset sold  B. Related Party Transactions  ITEM 7.  MAJOR STOCKHOLDERS AND RELATED PARTY TRANSACTIONS A. Major Stockholders Name As of April 1, 2009 As of April 1, 2010 As of April 1, 2011 As of April 1, 2012 number % number % number % number % The Republic of China government(1) 3,544,036,853 36.55 3,685,804,514 38.01 2,957,318,085 38.12 2,885,164,257  37.19 The Ministry of Transportation and  Communications 3,422,148,723 35.29 3,422,148,720 35.29 2,737,718,976 35.29 2,737,718,976  35.29 101 P AR T I