Taiwan Depository & Clearing Corporation

The 2018 Asian Roundtable on Corporate Governance held by the Organization for Economic Co-operation and Development (OECD) fell on November 7 and 8 in Kuala Lumpur, Malaysia. Taiwan Stock Exchange (TWSE) and Taiwan Depository & Clearing Corporation (TDCC), led by Securities and Futures Bureau (SFB) of Financial Supervisory Commission (FSC), attended the event. Sherman Lin, TDCC Chairman & CEO, was invited to be one of the panelists for "The use of flexibility and proportionality in corporate governance frameworks". In this OECD panel discussion, the concept that “one size doesn’t fit all” was emphasized. Corporate governance should be flexible and on proportionality grounds to formulate relevant regulations in accordance with market characteristics and the nature of regulated entities. Thus, corporates can strike a balance among enhancing market transparency, maintaining a fair market, and reaching cost-effective principles.

The panelists came from Japan, Hong Kong, Singapore, and Taiwan. They discussed how these companies made good use of flexibility and proportionality in corporate governance. Lin shared with others about the excellent performance in corporation under the FSC Corporate Governance Blueprint. He talked about the regulations on single-director principles, e-voting, and English information on shareholders’ meetings, as well as how these regulations were exercised effectively step by step because the regulations needed to take different companies’ capital, industry, and foreign shareholding ratio into consideration. Lin emphasized that Taiwan was utilizing innovation technology to construct effective platforms to reduce legal compliance cost for each players and to increase transparency and justice in the market.

Sherman Lin, TDCC Chairman & CEO, was invited as the panelist of the discussion on "The use of flexibility and proportionality in corporate governance frameworks" at the OECD Asian Roundtable on Corporate Governance.

In the penal discussion, the OECD Corporate Governance Committee pointed out that the increase in institutional ownership was the trend in the global market. Institutional shareholders are playing a more important role in corporate governance. Therefore, TDCC is helping Taiwan’s institutional shareholders in terms of stewardship, and is assisting in realizing the New Corporate Governance Blueprint. The TDCC Investor Relations Platform (TDCC IR Platform), which provides bilingual information is expected to be launched in 2019. The platform will improve the efficiency and quality of information exchange between issuers and investors, make it easier for investors to search information on issuers, make communication between issuers and shareholders more focused, and make Taiwan more visible in the international community.