The Taiwan Stock Exchange Corporation (the “TWSE”) announced the 2023 (10th Round) Corporate Governance Evaluation. The system consists of four dimensions with a total of 80 indicators, and will be effective from January 1 to December 31, 2023. The 2023 evaluation results are expected to be published by the end of April 2024.

The amendments made to the 10th Round evaluation are in accordance with the "Corporate Governance 3.0 - Sustainable Development Roadmap" and “Capital Market Roadmap,” and refers to the corporate governance and sustainable development trends, regulations, policies in Taiwan and abroad as well as feedback from evaluated companies and the CG eco-system. Eight indicators were added, six indicators were deleted and 18 amended in order to continuously drive enterprises to adopt various corporate governance mechanisms. In addition, in order to encourage enterprises to pay attention to issues related to shareholders' equity and sustainable development, while taking into account the increase or decrease in the number of indicators, the weight of " Protecting Shareholder Rights and Interests" and " Promoting for Sustainable Development" dimensions are augmented.

The TWSE further explained that to strengthen corporate governance and promote the implementation of sustainable development, the added indicators include "material related-party transactions shall be submitted to the shareholders' meeting for approval or report," "minutes of the general shareholders' meeting shall record important content of shareholders' questions and company replies," and "shareholders' meeting adopting online live broadcast or upload of audio and video after the meeting" to protect shareholders' rights and interests. In addition, "the board of directors’ assessment of the independence and competency of certifying CPAs by reference to audit quality indicators (AQIs)" and "risk management supervision by the audit committee or a functional committee at the level of the board of directors (such as a risk management committee)" were included in the indicators to improve the relevant functions of the board of directors, and add relevant indicators such as workforce diversification, community influence and cultural development for sustainable development, in order to drive companies to address sustainable development issues.

In addition, to ensure that the company's convening of shareholders' virtual meeting will not harm shareholders' rights and interests, the occurrence of material damage to shareholders' rights and interests during such a virtual meeting is included in the reasons for the deduction of points.

The indicators of the “10th Round Corporate Governance Evaluation” can be found in Evaluation System/Corporate Governance Evaluation System (https://cgc.twse.com.tw/evaluationCorp/listCh).