TWSE establishes a Corporate Governance Center to commit to excellence in corporate governance in Taiwan’s capital markets.

Publish Date︰2013-10-28 14:51

The Taiwan Stock Exchange has established a Corporate Governance Center with an Advisory Committee, as directed by regulators. The first Advisory Committee was convened on October 25, 2013.
The government has been educating the domestic public companies over the importance of corporate governance since 1998. The Executive Yuan established the “Corporate Governance Reform Task Force” on January 7, 2003. In November of the same year, the Executive Yuan published the “Accountability of Companies in Taiwan: Policy Agenda and Action Plan to Strengthen Corporate Governance” as the basis for the implementation of corporate governance. Over a period of fifteen years, all relevant government agencies have consistently revised statutes and regulations, promoted corporate governance, and planned and constructed the information disclosure and evaluation system. As of now, we can see effects in the implementation of corporate governance in our country. To further improve the standard of corporate governance among corporations in this country, the FSC tasked the TWSE to plan and establish the Corporate Governance Center.
The Corporate Governance Center has a subordinate unit, the Advisory Committee, which is chaired by Lee Sush-Der, Chairman of the TWSE, with ten committee members (including the chair) appointed by the following agencies: FSC Securities and Futures Bureau, FSC Banking Bureau, FSC Insurance Bureau, MOEA Department of Commerce, GreTai Securities Market, Taiwan Futures Exchange, Taiwan Depository and Clearing Corp., Securities and Futures Investors Protection Center, and Securities and Futures Institute. The Advisory Committee convenes meetings on a regular basis (quarterly) or whenever necessary. At this meeting of the Advisory Committee, members defined the organization of incorporation and rules of the Corporate Governance Center, the functional models of the Advisory Committee, and the operating procedures of the evaluation of information disclosure and the evaluation of corporate governance.
According to the TWSE, for the promotion and implementation of corporate governance, the Corporate Governance Center has four subordinate sections: comprehensive planning, secretariat, promotion and education, and guidance and evaluation. These sections coordinate and plan issues related to corporate governance (and corporate social responsibility), such as: the research and drafting of statutes and regulations, special topic research, building up the database, cooperation with media, training for board members, investor relations, investor education, evaluation of information disclosure, evaluation of corporate governance, domestic promotion and implementation, and participation in international activities. The goal is to further improve corporate governance among publicly traded companies and emerging stocks, and even introducing concepts and mechanisms of corporate governance (and corporate social responsibility) to public companies and outstanding private companies to improve the standard and image of corporate governance in all aspects in Taiwan.