Taiwan Depository & Clearing Corporation

To enhance corporate governance and promote shareholder activism, Financial Supervisory Commission has gradually implemented e-voting to facility the voting procedure for shareholders. Under the supervision of competent authority, e-voting has been implemented in all listed companies at stock exchange and over-the-counter markets this year, which enables Taiwan to reach a new milestone of corporate governance.

In celebration of the milestone and raise the awareness of domestic corporate governance and shareholder communication, TDCC, along with the assistance of Taiwan Stock Exchange and Taipei Exchange, held “ 100% E-Voting in 2018 and Enhancement of Corporate Value-From the Perspectives of Corporate Governance, Shareholder Engagement, and Proxy Advisers” forum on March 5th. At the forum, in addition to celebrating full prevalence of e-voting, TDCC invited authorities, local and international scholars and professionals as well as representatives from investment institutions to exchange and communicate both ideas and experiences for a better understanding of the trend worldwide and enhancement of corporate governance. There were over 250 issuing company directors and institutional investors attending and the forum aroused intense response and enthusiastic feedback from the audience, which was believed to have a positive effect on Taiwan’s capital market growth.

In recent years, the investing environment of Taiwan capital market has been comprehensive, and Taiwan has received recognition from international institutional investors. Until the end of 2017, foreign investments had taken up 40% of the market value. Besides, as a result of the implementation of competent authorities, local institutional investors have already signed corporate governance code, indicating the growing importance of investor relations. Through the positive interaction between businesses and investors and the popularity and transparency brought by corporate governance, investors’ long-term support for corporate operation will be drawn and corporate sustainability will be enhanced.

In the light of this, executives from listed companies rated top 5 % at corporate governance and excel in investor relations management were invited to the forum. Lora Ho, Senior Vice President, Chief Financial Officer and Spokesperson of Taiwan Semiconductor Manufacturing Company Limited, Chang-Ken Lee, President of Cathay Financial Holding Company Limited, James Jeng, President of Taiwan Mobile Company Limited, Dennis Chen, Chairman and President of Win Semiconductors Corporation, Grace Yeh, Founder, President & Chief Executive Officer of PharmaEngine Incorporation, and Joseph N.C. Huang, President and Spokesman of E.SUN Financial Holding Company Limited shared experience of corporate governance and shareholder communication with all the attendees.

As for international speakers, Mrs. Kerrie Waring from International Corporate Governance Network (ICGN) and Mr. Warren Chen from the renowned Institutional Shareholder Services (ISS) gave lectures on “Global Trends in Corporate Governance ” and “Voting Guideline and Analysis of Essential Issues of AGMs in Taiwan ” respectively. BlackRock, Hermes, APG, PGGM and Glass Lewis all joined the forum and shared their observation of and expectation for Taiwanese market. The forum generated more advice and key information for shareholder meetings of listed companies to better create adaptive strategy and preparation.

In Asian Corporate Governance Association (ACGA)’s report issued in September 2016, Taiwan was rated the fourth in Asia, following Singapore, Hong Kong and Japan. The major factors include the explosive growth of e-voting, institutional investors’ active participation in shareholders’ meetings, increased information revelation in English, and improved quality of shareholders’ meetings. Looking to the future, TDCC will strive for constant innovation for e-voting services. Currently, TDCC is evaluating the construction of Chinese and English integration platform of investors relations on the existing StockVote. This is expected to improve communication between investors and businesses and to facilitate institutional investors’ inquiry about information of issuing companies’ investor services and corporate governance. Also, international visibility will be elevated. It is certain that the policy implementation of the competent authority as well as TDCC’s services and innovation will continue to elevate corporate value in Taiwan.