There will be penalties for illegal solicitation of proxies


A proxy solicitor or company handling solicitation matters on behalf of others may not offer valuables to shareholders in return for their proxies. Any illegal solicitation will lead to invalidity of the proxy votes involved, and individuals and organizations engaging in illegal proxy solicitation will be subject to an administrative fine no less than NT$240,000 and no more than NT$4,800,000 according to Article 178 of the Securities and Exchange Act.

Some investors claimed that their proxies have been fraudulently acquired by unknown people amid special shareholder meetings organized of late for reelection of board members, and urged competent authorities to intervene. TDCC is appointed by the Financial Supervisory Commission (FSC) to be in charge of the investigation of legal compliance by individual solicitors, soliciting organizations on behalf of others, proxy agents and their stakeholders during proxy solicitation. TDCC has always maintained impartiality in its investigation and will not erroneously accuse an innocent person or set free a guilty one. TDCC urges informants to provide solid evidence to facilitate investigation, and any cases of illegal proxy solicitation will be duly investigated. Acquisition of proxy either by larceny or fraudulence is a criminal offense.

Regarding the aforementioned claims, TDCC has contacted the shareholder service agencies of the companies in question to inform them that an impartial investigation will be conducted while evidence is being collected. TDCC has also requested the companies to provide documentary evidence for review, and reiterated the importance of legal compliance to proxy soliciting companies and their employees.

Investors that found any individuals or organizations providing compensations in monetary or other forms for proxy solicitation may report to TDCC, and specify in their report the company, venue and people involved in illegal proxy solicitation, or provide audio or video recordings as evidence. The report hotline is 02-25473733, and investors can also send the evidence by email to tdcc@tdcc.com.tw. Informants will be rewarded if the case is found true and the involved individuals and organizations penalized by competent authorities.