TWSE’s “Corporate Governance Evaluation System” Conference Came to a Successful Close

Publish Date︰2014-03-14 17:04
 
TWSE’s “Corporate Governance Evaluation System” Conference Came to a Successful Close
 
To help investors understand the effectiveness of corporate governance practice in Taiwan and induce corporations to achieve excellence through better corporate governance, the Corporate Governance Center of the Taiwan Stock Exchange Corporation (TWSE) has created a “Corporate Governance Evaluation System” based on the “Corporate Governance Roadmap 2013.” On this basis, TWSE performs corporate governance evaluation on all publicly listed companies to accomplish the three major goals: 1. Reward outstanding companies and designate good companies as benchmarks of corporate governance. 2. To be in line with international practice and enhance Taiwan’s international image. 3. Increase disclosure of information, expand investor involvement, and improve the quality of capital markets.

To receive recommendations from all stakeholders in corporate governance and design a better evaluation system, TWSE held the “Corporate Governance Evaluation System Conference” on March 10. TWSE invited experts and scholars in the field of corporate governance, accounting firms, Taiwan Corporate Governance Association, Business Council for Sustainable Development of Taiwan, Securities and Futures Investors Protection Center, The Institute of Internal Auditors, Taiwan, and delegates from publicly listed companies. An estimated 100 people attended. Attendees discussed the contents of Corporate Governance Evaluation Indicators with active participation, further affirming the Corporate Governance Evaluation System project as a whole. TWSE has expressed that the on-site interaction and solicitation of public opinion will enable a more comprehensive system. Additionally, TWSE is planning to hold various road shows in northern, central, and southern Taiwan in April and May this year (2014), so that publicly listed companies can better understand the Corporate Governance Evaluation System.
 
According to TWSE, Taiwan’s Corporate Governance Evaluation Indicator Framework is mainly based on OECD Principles of Corporate Governance. The Framework consists of five major categories, which are “The Rights of Shareholders,” “The Equitable Treatment of Shareholders,” “The Board Composition and Management,” “Information Transparency,” and “Protection of Stakeholder Interests and Corporate Social Responsibility.” TWSE also takes reference from evaluations made by major corporate governance evaluation institutions including Asia Corporate Governance Association’s evaluation, ASEAN Corporate Governance Scorecard, and Taiwan’s Information Disclosure Evaluation in order to create a set of evaluation indicators that is compatible with Taiwan’s culture and meets international standards. TWSE also states that this is the first time Taiwan has performed a comprehensive corporate governance evaluation on all publicly traded companies. TWSE hopes that this evaluation mechanism can prompt corporations to pay more attention to corporate governance, effectively shaping Taiwan’s corporate governance culture, and creating a mutually beneficial corporate value.