Press ReleasesLatest News
Implementing Corporate Governance Roadmap has achieved good results and the Quality of Shareholders' Meetings has raised
Publish time:2015-07-22
Raising the quality of shareholders' meetings is one of the most important specific measures of the Financial Supervisory Commission’s (FSC) “Corporate Governance Roadmap”. It has been promoting a number of programs to strengthen the transparency of shareholders’ meetings, impartiality of convening procedures, and the efficiency in shareholder voting.These measures include expanding the implementation of electronic voting, encouraging voting by poll in shareholders’ meetings, providing an English version of the shareholders' meeting handbook, advocating directors and supervisors to adopt a nomination system for board candidates, and lowering the maximum number of shareholders’ meetings convened per day.
The Taiwan Stock Exchange (TWSE) states that the important measures above have achieved good results through law amendments and propagation. For example in 2015, 317 TWSE-listed companies adopted a nomination system for directors and supervisors in their Articles of Association, an increase of 58% with 116 more companies than in 2014. 257 companies adopted electronic voting in 2015, a rise of 35% with 67 additional enterprises from 2014. It should be noted that of the 257 companies, 47 voluntarily adopted electronic voting earlier than required by law. Shareholders’ meetings that adopted poll voting in 2015 also had a solid jump, up 53% with 136 more companies also offering this. 131 companies provided an English version of their shareholders' meeting handbook in 2015, growth of 64% with 51 additional enterprises having this for foreign investors. 107 companies made available English versions of their annual reports in 2015, an increase of 34% with 27 more companies recognizing the importance of this service. The average filing date for procedure manuals and annual reports in 2015 was earlier than that of 2014; it is significant because shareholders have quicker access than before.
In addition to increased quality of shareholders’ meetings, other measures propagated by the Roadmap have also been effective. For “board structure and operation”, 219 TWSE-listed companies set up audit committees, a rise of 29% with an increase of 49 companies. 619 companies had independent directors in 2015, a 27% augmentation with 131 more enterprises.
For “information disclosure”, 47 TWSE-listed companies filed their 2014 annual financial reports one month earlier than the March 2015 deadline, an increase of 114% with 25 additional companies.This is important for shareholders as it allows them more time to make more informed investment decisions, especially for foreign shareholders as English AGM notices had a 83% jump in 2015.
For “non-financial information”, this refers to Corporate Social Responsibility (CSR) filing. 100 TWSE-listed companies filed their 2014 CSR reports to the Market Observation Post System (MOPS) as of July 15 this year, of which 71 were mandatory filings and 29 were voluntary. CSR reports include ESG data, which enables shareholders to view beyond financial information. There are still 99 companies that can extend their deadline to December 31, 2015 because they did not prepare CSR reports in 2014 (for 2013), have not followed the Global Reporting Initiative (GRI) guidelines in preparing the CSR report, and did not have CPA Assurance statements. In comparison with the 171 companies that prepared 2013 CSR reports, a 16% increase is expected for 2014 CSR reports due in 2015.
TWSE’s Corporate Governance Center, peripheral units, and corporate governance-related organizations have been actively advocating and promoting corporate governance after the announcement of the “Corporate Governance Roadmap”. The data above shows that these measures have increased the importance that TWSE- and TPEx-listed companies attach to corporate governance mechanisms. The organizations will continue to promote corporate governance-related measures to improve the overall quality of capital markets. Corporate governance-related statistics can be found on the Corporate Governance Center’s Statistics area (http://cgc.twse.com.tw/).
The Taiwan Stock Exchange (TWSE) states that the important measures above have achieved good results through law amendments and propagation. For example in 2015, 317 TWSE-listed companies adopted a nomination system for directors and supervisors in their Articles of Association, an increase of 58% with 116 more companies than in 2014. 257 companies adopted electronic voting in 2015, a rise of 35% with 67 additional enterprises from 2014. It should be noted that of the 257 companies, 47 voluntarily adopted electronic voting earlier than required by law. Shareholders’ meetings that adopted poll voting in 2015 also had a solid jump, up 53% with 136 more companies also offering this. 131 companies provided an English version of their shareholders' meeting handbook in 2015, growth of 64% with 51 additional enterprises having this for foreign investors. 107 companies made available English versions of their annual reports in 2015, an increase of 34% with 27 more companies recognizing the importance of this service. The average filing date for procedure manuals and annual reports in 2015 was earlier than that of 2014; it is significant because shareholders have quicker access than before.
In addition to increased quality of shareholders’ meetings, other measures propagated by the Roadmap have also been effective. For “board structure and operation”, 219 TWSE-listed companies set up audit committees, a rise of 29% with an increase of 49 companies. 619 companies had independent directors in 2015, a 27% augmentation with 131 more enterprises.
For “information disclosure”, 47 TWSE-listed companies filed their 2014 annual financial reports one month earlier than the March 2015 deadline, an increase of 114% with 25 additional companies.This is important for shareholders as it allows them more time to make more informed investment decisions, especially for foreign shareholders as English AGM notices had a 83% jump in 2015.
For “non-financial information”, this refers to Corporate Social Responsibility (CSR) filing. 100 TWSE-listed companies filed their 2014 CSR reports to the Market Observation Post System (MOPS) as of July 15 this year, of which 71 were mandatory filings and 29 were voluntary. CSR reports include ESG data, which enables shareholders to view beyond financial information. There are still 99 companies that can extend their deadline to December 31, 2015 because they did not prepare CSR reports in 2014 (for 2013), have not followed the Global Reporting Initiative (GRI) guidelines in preparing the CSR report, and did not have CPA Assurance statements. In comparison with the 171 companies that prepared 2013 CSR reports, a 16% increase is expected for 2014 CSR reports due in 2015.
TWSE’s Corporate Governance Center, peripheral units, and corporate governance-related organizations have been actively advocating and promoting corporate governance after the announcement of the “Corporate Governance Roadmap”. The data above shows that these measures have increased the importance that TWSE- and TPEx-listed companies attach to corporate governance mechanisms. The organizations will continue to promote corporate governance-related measures to improve the overall quality of capital markets. Corporate governance-related statistics can be found on the Corporate Governance Center’s Statistics area (http://cgc.twse.com.tw/).
Corporate Governance Roadmap Promotion Results | |||||
---|---|---|---|---|---|
Category | Item/Number of companies | 2015 | 2014 | Growth | Growth % |
Protecting Shareholder Rights and Interests/ Treating Shareholders Equitably |
Adoption of a nomination system for directors and supervisors in their Articles of Association | 317 | 201 | 116 | 58% |
Adoption of electronic voting | 257 | 190 | 67 | 35% | |
Adoption of poll voting at the AGM | 393 | 257 | 136 | 53% | |
The average filing date of Annual Report prior to the day of the AGM | 16.13 | 14.38 | 1.75 | 12% | |
The average filing date of English Meeting Handbook prior to the day of the AGM | 28.66 | 25.7 | 2.96 | 12% | |
Enhancing Board Composition and Operation | Set up the Audit Committee | 219 | 170 | 49 | 29% |
Set up the independent directors | 619 | 488 | 131 | 27% | |
Increasing Information Transparency | Filing IFRS financial statements of the previous year one month earlier than the March 2015 deadline (Consolidated or Individual) |
47 | 22 | 25 | 114% |
Filing English Annual Report | 107 | 80 | 27 | 34% | |
Filing English Meeting Handbook at the AGM | 131 | 80 | 51 | 64% | |
Filing English AGM Notices | 133 | 73 | 60 | 83% | |
Note: 2015 (As of June 2015) |