Purchasing Proxies is Illegal -TDCC Appeals for Reporting Any Concrete Evidence Immediately
2024/09/11
In the securities market, there are occasional rumors about proxy solicitation for shareholder meeting. To strengthen the management of proxy forms and curb illegal activities, TDCC will periodically audit the various locations where proxies are solicited for cases of public concern. This is to ensure compliance with the regulations governing the use of proxies at shareholder meetings.
Mr. Tzu-Ting Chen, Senior Vice President of TDCC, emphasized that soliciting proxies from shareholders in exchange for money or other benefits is a serious violation of the law. In addition to excluding such proxies from the voting rights at that shareholder meeting, the Financial Supervisory Commission (FSC) will impose fines ranging from NT$240,000 to NT$4.8 million on violators in accordance with the Securities and Exchange Act.
If investors discover illegal acquisition or use of proxy forms, they can report it to the TDCC. Providing recordings, videos, or photos of the illegal activities will assist in the investigation. If the reported violations are confirmed, the informant may receive a reward of up to NT$200,000.
TDCC also encourages investors not only to delegate proxy attendance to others but also to utilize the TDCC's "Shareholder e-Service" for electronic voting in shareholder meetings. This helps implement shareholder activism. If there are gifts distributed at shareholder meetings, shareholders can collect them according to the company's announced period and location, ensuring their rights are not affected. The reporting hotline is (02) 2547-3733 or email tdcc@tdcc.com.tw.
