During the recent peak season of shareholder meetings, there have been frequent occurrences of intense competition in the election of directors for certain companies, accompanied by active solicitation of proxies. Advertisements for seeking proxies from shareholders are also common. The Taiwan Depository & Clearing Corporation (TDCC) is urging investors to reject any illegal use of proxies for shareholder meetings in order to enhance corporate governance.

Before the peak season of shareholder meetings each year, TDCC organizes seminars and briefings for reminding solicitors and their personnel the importance of regulations governing proxy solicitation as well as conducting personnel education and training to reinforce awareness and discourage the purchasing of proxies. Furthermore, TDCC conducts periodic inspections of places where proxies are solicited to ensure adherence to legal requirements.

In the market, occasional rumors of proxy solicitations arise due to disputes over company’s management rights. To deter unlawful behavior, TDCC encourages the reporting of cases involving the illegal use of proxies for shareholder meetings. If investors observe personnel at solicitation venues offering money or other incentives to purchase proxies, they can provide concrete evidence such as audio or video recordings to TDCC for investigation. Upon verification and confirmation of violations in accordance with securities trading regulations by the Financial Supervisory Commission (FSC), whistleblowers may be eligible for a maximum reward of NT$200,000. The hotline for reporting is (02)2547-3733.

TDCC Senior Vice President Tzu-Ting Chen emphasized that investors have various options for participating in shareholder meetings. Apart from attending in person or granting proxy authority, they can utilize TDCC’s Stockservices website. Through the website, investors can engage in electronic voting or join virtual shareholder meetings to personally exercise their voting rights, thereby promoting shareholder activism.