Taiwan Depository & Clearing Corporation

TWSE-listed, TPEx-listed and Emerging market companies have been convening shareholder meetings intensively since May. Some solicitors are soliciting proxies to support specific candidates for the company Board of Director and Supervisor’s election. Taiwan Depository & Clearing Corporation (TDCC) reminds solicitors and proxy solicitation service providers that proxy solicitation must comply with the rules, otherwise, they will be subject to penalties under the Securities and Exchange Act.

According to Regulations Governing the Use of Proxies for Attendance at Shareholder Meetings of Public Companies, parties other than solicitors and proxy solicitation service providers are not allowed to collect proxies from shareholders or purchase proxies. Upon investigation, those found violating regulations will have their obtained proxies disregarded in voting rights. The Financial Supervisory Commission (FSC) will also impose fines ranging from NT$240,000 to NT$4.8 million on violators, in accordance with Article 178 of the Securities and Exchange Act.

In order to safeguard shareholders' rights and prevent disputes in shareholder meetings, the FSC instructed the Taiwan Depository & Clearing Corporation (TDCC) to inspect the proxy solicitation process for shareholder meetings. TDCC stated that they will adopt a proactive attitude in verifying tip-off letters with clear and specific evidence, while maintaining objectivity and neutrality. Should investors discover illegal activities involving the purchase of shareholder meeting proxies with money or other benefits, they can report with concrete evidence such as recordings or videos to TDCC. Upon verification and confirmation of the violation by the Financial Supervisory Commission (FSC) according to the Securities and Exchange Act, whistleblowers may receive a maximum reward of NT$200,000. The hotline for reporting is (02)2547-3733.

TDCC also encourages investors to utilize " Stockservice Platform" in addition to authorizing others through proxy forms to attend meetings. Through electronic voting or participating via video conferencing, shareholders can exercise their voting rights, thus safeguarding their interests.