2014 OECD Asian Corporate Governance Roundtable Conference Record

Publish Date︰2014-02-27 15:36

2014 OECD Asian Corporate Governance Roundtable Conference Record
 
On February 11 and 12, the Organisation for Economic Co-operation and Development (OECD) hosted the 2014 Asian Roundtable on Corporate Governance in Mumbai, India. The vice chairperson of the Financial Supervisory Commission (FSC), Tien-Mu Huang, was invited to participate as a panelist at the session titled, “Improving Supervision and Public Enforcement in Asia: Good Practices”. Michael Lin, the president of Taiwan Stock Exchange (TWSE) also attended to discuss recent corporate governance developments in India, the revision of the OECD principles of corporate governance, governance and performance of listed state-owned enterprises, and the risks and opportunities in Asia for family-owned business groups.  Roundtable participants included representatives of financial regulatory authorities, stock exchanges, funds, institutional investors, listed companies, accounting firms, corporate governance institutions, and universities from across Europe, America, and Asia. An estimated 150 people attended.
 
In 2013, OECD established a Taskforce on Enforcement to enhance the effectiveness of corporate governance enforcement and provide recommendations based on the study of the legal framework and enforcement of fourteen Asian countries. Taiwan has been actively participating in this Taskforce by replying to OECD questionnaires, sending emails, joining phone conferences, engaging communications and discussions with OECD on domestic law enforcement policies, practical operations and challenges and obstacles we face. These communications have helped Taiwan obtain opportunities for international exposure. Based on an OECD questionnaire sent to fourteen participating countries and interviews of partial participating countries, OECD presented a report for attendees for further review and discussion. Additionally, OECD will make adjustments according to recommendations provided by each participating country. The report is expected to be completed by the end of April this year.
 
At the start of the conference, the vice chairperson of the Financial Supervisory Commission (FSC), Tien-Mu Huang, made a presentation and expressed that laws cannot prevail by themselves and commitment is required. Then, Taiwan’s recent promotion of corporate governance and public enforcement of good practices mandated by the FSC were mentioned. This included the establishment of oversight mechanisms, group meetings with the Ministry of Justice, business group supervision, and assistance for judges. Furthermore, Huang also shared the results of research conducted by the FSC and Asia-Pacific Economic Cooperation (APEC). Recently, member nations have been placing a great importance on corporate governance measures, such as non-financial information disclosure, board effectiveness, shareholder activism, related party transactions, and enforcement issues. Huang’s presentation induced positive comments from the audience, resulting in a successful diplomatic and public relations effort for Taiwan’s reform and progress in corporate governance. This helped clear any doubts included in CG Watch 2012 published by the Asian Corporate Governance Association, and improve Taiwan’s international reputation.
 
During this conference, attendees from Taiwan exchanged opinions and established a network with other country representatives, while actively propagating the development of Taiwan’s corporate governance.  Furthermore, they explained the “Corporate Governance Roadmap 2013” and proposed action plans for the next five years.  These include mandatory constitution of independent directors for all listed companies, the establishment of a corporate governance center to coordinate the planning of corporate governance related matters, and the development of a corporate governance evaluation system. These efforts have helped enhance Taiwan’s corporate governance image. This conference also led to an increased level of understanding regarding corporate governance and social responsibility in India, which will serve as a reference for the amendment and promotion of future policies in Taiwan.