Press Releases Events and Publications
The 2016 Corporate Governance Evaluation Award Ceremony was Magnificently Held on May 23
The 2016 (third round) Corporate Governance Evaluation Award Ceremony, jointly hosted by the Taiwan Stock Exchange and the Taipei Exchange, was held on May 23 at 5:30 p.m. at the Taipei International Convention Center, commending TWSE-listed and TPEx-listed companies for their outstanding performance in the CG Evaluation. In addition to Ruey-Tsang Lee, Chairman of the Financial Supervisory Commission (FSC), other guests invited to the ceremony included representatives from the competent authorities, the securities institutions, the Corporate Governance Evaluation Committee, corporate governance-related organizations, and major institutional investors.
Jun-ji Shih, chairman of TWSE, expressed during his speech that the TWSE Corporate Governance Center (CG Center) has had remarkable achievements since its establishment in 2013. It has successively implemented various initiatives relating to the Corporate Governance Roadmap, including establishing the CG Evaluation system, promoting the compilation of corporate social responsibility reports, constructing the official website for the CG Center, organizing seminars and attending important international conferences on a regular basis and developing the Stewardship Principles for Institutional Investors. The implementation of the CG Evaluation system has also effectively inspired enterprises to proactively implement good corporate governance policies. Furthermore, the “TWSE Corporate Governance 100 Index,” which was compiled based on the CG Evaluation results and was launched in 2015, successfully authorized a local securities investment trust enterprise (SITE) to launch the first corporate governance ETF in the domestic market in 2016, evidencing the confidence of institutional investors in the constituent companies.
Ruey-Tsang Lee, Chairman of the Financial Supervisory Commission, recognized the efforts of the listed companies in elevating the quality of corporate governance. For TWSE-listed companies, for example, there are 40 new companies this year in the list of top 20% performers when compared with that of the previous year; and 16 new companies in the list of top 5% performers. The replacement ratio is 24% and 37%, respectively. These prove the increasing attention paid to corporate governance by the companies. According to the statistics, all listed companies in Taiwan have been making constant improvements in recent years in all aspects of corporate governance. Their achievements have been highly commended by international professional corporate governance institutions. According to the evaluation results of the Asian Corporate Governance Association (ACGA), the ranking of Taiwan in corporate governance has been improved from the sixth place in 2014 to the fourth place in 2016, being the country with the most significant improvement. In the future, the competent authority will continue expediting the corporate governance policies and strengthen the overall CG quality in the domestic capital market to ensure better protection to the investors and to build up a good international image and investment environment for the country.
Companies awarded this year include 76 listed companies ranked within the top 5% of the CG Evaluation (43 TWSE-listed and 33 TPEX-listed companies), as well as the companies with the most significant improvement in CG performance (10 each for TWSE-listed and TPEX listed companies). The available information shows that, for more than half of the award-winners, the award ceremony was attended by the chairman or the CEO in person. The number of participants in the ceremony was close to 200. These facts suggest that the results of the CG evaluation have received great attention and attracted enthusiastic participation from all related parties.
The TWSE hopes that the award ceremony would effectively recognize the efforts of the winners in implementing corporate governance. It is also expected that these companies will become the role models in the capital market and provide best practices to the market. All participants in the CG Evaluation, in the meantime, are encouraged to learn from the best practices and continue with their efforts in elevating the CG quality of our capital market, fulfilling their social responsibilities, and increasing the competitiveness of local enterprises.