Taiwan Depository & Clearing Corporation

Although the Financial Supervisory Commission (FSC) announced that all public companies to postpone their Annual General Meetings (AGMs) scheduled to convene between May 24 and June 30 in 2021, pre-meeting assignments regarding shareholder services should still be completely processed one day before the original meeting dates. The tasks mentioned above include sending out meeting notices, processing solicitation of Power of Attorney (POA), and handling e-voting matters. The new measure that delays shareholder meetings will slightly affect shareholder services, yet significantly facilitate virus containment.

Traditionally, shareholders usually collect their meeting gifts before the events take place. Thus, during this year’s POA solicitation period, they are still showing up at each solicitation site to pick up their souvenirs as usual when they have time. However, this practice goes against the current policies to curb the pandemic. In response, the Taiwan Depository & Clearing Corporation (TDCC) carried out the FSC’s instructions via video conferencing on May 28 to help issuers fully implement the related policies and measures. The TDCC advised and guided the TWSE/TPEx-listed companies and their shareholder services agencies to reschedule the dates of gift distribution or give out their gifts on separate days. All public companies should effectively adopt protective measures.

The TDCC Secretary General Chen Kuang-Hui suggested that the TWSE-listed, TPEx-listed, and emerging companies tread lightly and look into the precautionary measures that the China Steel Corporation (CSC) took to stop the transmission of the virus. The CSC decided to withhold their meeting gifts until the curve is flattened. For those issuers that need to make sure their shareholders receive gifts by certain deadlines, they must introduce indoor gathering measures, including posting coronavirus containment announcements at the entry, imposing name-based or contact-based systems, arranging one-way entries and exits, ensuring mask rules and temperature checks, building 1.5-meter social distancing floor plans with markers and tapes, and assigning on-site staff to keep an eye on physical distance and crowd control. If companies choose outdoor venues to deliver their gifts, they should meticulously prepare for route planning and observe other preventative measures. Also, on-site staff must be assigned to guide the investors waiting in line and avoid close contact by keeping a safe space between them.

As Taiwan is still grappling with the COVID crisis, Mr. Chen is once again calling for issuers to undertake collaborative efforts with the government so as to strengthen pandemic preparedness by delaying gift distribution and avoiding cluster infections. With enterprises working together and taking cautious approaches to such activities during the pandemic, we are all helping slow the virus’s spread.