Corporate Governance Implementation Status
Through a company resolution passed by the board of directors meeting on August 6, 2021, the Company appointed Ms. LEE, YU-LIN, the vice president of the Operation Service Center as the Corporate Governance Officer. Ms. Lee has a minimum of three-year experience in conducting financial operations and business management in listed companies.
A.The main duties are the following:
- Handling of matters relating to board of directors meetings and shareholders meetings in compliance with law;
- Preparation of minutes of the board of directors meetings and shareholders meetings;
- Assistance in onboarding and continuing education of the directors and supervisors;
- Provision of information required for performance of duties by the directors and supervisors;
- Assistance in the directors' and supervisors' compliance of law; and
- Other matters described or established in the articles of incorporation or under contract.
B.Continuing Education Training of Corporate Governance Officer in 2023 Year
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Corporate Operation Organizational Char |
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Board of Directors |
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The 17th Board of Directors consists of 7 directors (including 4 independent directors).
All serve for three-year terms. The term of office of the current Board of Directors is from June 30, 2022 to June 29, 2025. |
Chairman Taiwan Excelsior Co., Ltd. Representative: Peter Tsai |
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Director Taiwan Excelsior Co., Ltd. Representative: Cynthia Lin |
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Director Calvin Tsai |
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Independent Director Hwa-Min, Lin |
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Independent Director Praveen Tyle |
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Independent Director HSU, CHIN-HSIN |
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Independent Director LIN, SHUI-YUNG |
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Diversity of Board Members |
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In order to strengthen corporate governance and promote the ideal development of board composition and structure, the “policy of board diversity” listed in the “Corporate Governance Best Practice Principles” formulated by our company on November 6, 2020 has highlighted: the composition of the board of directors should give serious consideration to the demands of the company, including business model, direction of business management and future development trends, and evaluate all kinds of diversity aspects but not limited to the following two standards:
1. basic requirements and values: gender, age, nationality etc.
2. professional knowledge and skills: professional background(law, accounting, Knowledge of the industry, financial analysis etc.) and professional experience.
Each board member shall have the necessary knowledge, skills, and literacy to perform their duties. To achieve the ideal goal of corporate governance, the board of directors shall possess the following abilities:
1. Ability to make operational judgement
2. Ability to perform accounting and financial analysis
3. Ability to conduct management administration
4. Ability to conduct crisis management
5. Knowledge of the industry
6. International market perspective
7. Ability to lead
8. Ability to make policy decisions
The present board of our company is formed by 7 directors (4 independent directors). The board members all possess rich experience and specialty in the fields of finance and business management. In addition, the composition of the board of directors is determined by taking gender equality into consideration, with female directors accounting for 10% of the total. 2 female director is included among the current 7 directors, which is 95.92%.
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Audit Committee |
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The Company establishes the Audit Committee on 30 June 2022, comprising of 4 independent directors. The purpose is to assist the Board of Directors in discharging its duty to monitor the quality and integrity of the accounting, auditing, financial reporting procedures, and financial control of the Company. The term of office of the current Audit Committee is from June 30, 2022 to June 29, 2025. |
Chairman & Independent Director Hwa-Min, Lin |
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Independent Director Praveen Tyle |
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Independent Director HSU, CHIN-HSIN |
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Independent Director
LIN, SHUI-YUNG |
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Audit Committee Role & Responsibilities |
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According to the Company’ s Procedural Rules for Audit Committee Charter, the powers of the Committee are as follows:
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Summary of the major work of the Audit Committee during the Year |
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Audit Committee has held 5 meetings in 2023 reviewing the following matters:
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Operation of the Audit Committee for 2022 year |
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Please refer the file, “Operation of the Audit Committee for 2022 year”. |
Remuneration Committee |
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The 5th Remuneration Committee consists of 3 members. The term of current Remuneration Committee members is from June 12, 2019 to June 11, 2022, the same as that of the board of directors by whom they were appointed.
1.Practices of Remuneration Committee(5 meetings were held by December 31, 2023) |
Hwa-Min, Lin |
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Praveen Tyle |
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Kathy Yang |
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Performance Evaluation of Board Directors |
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To implement corporate governance and enhance the Company's board functions, and to set forth performance objectives to improve the operation efficiency of the board of directors, this template is established pursuant to Article 37 of the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies for compliance. The Board has approved at its meeting being held on August 10 2020 for “Rules for Performance Evaluation of Board of Directors”. The Company's board performance evaluation shall be conducted by an external independent professional institution or a panel of external experts and scholars at least once every 3 years. Internal and external board performance evaluations shall be completed before the end of the first quarter of the following year.
The procedures for the Company's board performance evaluation are as follows: |
1. The Company shall take into consideration its condition and needs when establishing the criteria for evaluating the performance of the board of directors, which should cover, at a minimum, the following five aspects: (1) Participation in the operation of the company; (2) Improvement of the quality of the board of directors' decision making; (3) Composition and structure of the board of directors; (4) Election and continuing education of the directors; and (5) Internal control. |
2. The criteria for evaluating the performance of the board members (on themselves or peers), should cover, at a minimum, the following six aspects:
(1) Alignment of the goals and missions of the company; (2) Awareness of the duties of a director; (3) Participation in the operation of the company; (4) Management of internal relationship and communication; (5) The director's professionalism and continuing education; and (6) Internal control |
3. The criteria for evaluating the performance of functional committees should cover, at a minimum, the following five aspects:
(1) Participation in the operation of the company; (2) Awareness of the duties of the functional committee; (3) Improvement of quality of decisions made by the functional committee; (4) Makeup of the functional committee and election of its members and (5) Internal control |
Performance evaluation method |
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Results of Annual Performance Evaluation of Board of Directors and Functional Committee |
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Results of Performance Evaluation of Board of Directors for Year 2020 Results of Performance Evaluation of Board of Directors for Year 2021 Results of Performance Evaluation of Board of Directors for Year 2022 Results of Performance Evaluation of Board of Directors for Year 2022 |
Articles of Incorporation and Regulations
The implementation of preventing insider trading
1.The Company has established “Operating Procedures for Handling Internal Material Information” to prohibit all directors, managerial officers, employees or any other person who acquires knowledge of the Company's internal material information due to that person's capacity or position, occupation, or controlling relationship of the Company may divulge such information to others. No director, managerial officer or employee of the Company may seek to obtain or collect any internal material information of the Company from any person having knowledge of such information and such information is not within the scope of their office functions. They also may not divulge to others any non-public internal material information of the Company coming to their knowledge not as a result of performing their duties.
2.On August 6 2021, the Company has arranged Internal Education Training which has included “The Prevention of short-sing trading and Insider Trading” & “The Civil and Criminal Liabilities of Insider Trading” for all directors, supervisor and relevant personnel (total of 13 people involved). In addition, the Company makes the “Operating Procedures for Handling Internal Material Information” as a part of New Employee Orientation Programs on insider trading prevention to raise awareness. |
Elaboration on Internal Auditing Organization and Operation
Purpose of Internal Audit
The purpose of setting up internal audits at OEP is to examine and evaluate the validity of internal control systems, measure operational efficiency and compliance with applicable laws, and provide improvement suggestions whenever needed so as to ensure the continuous effective implementation of internal control.
Internal Auditor Setup
Our company has one internal auditor who is directly responsible to the Board of Directors.
Operation of Internal Audits
1. Scope of Audit:
Internal auditing works include inspecting and evaluating the adequacy and validity of the internal control systems of the company’s departments as well as performance in business activities.
2. Target of Audit:
Targets include all business activities that are responsible by all units of the company and associated branches.
3. Method of Audit:
In principle, auditors should conduct onsite auditing on the unit under audit and may ask the unit under audit to provide documents, accounting books, certificates, and other printed information for auditing.
4. Internal Audit Operating Procedures:
- Audit works include audit planning, information inspection and assessment, result communication, and follow-up reviews.
- Annual audit plans should be based on risk assessments. Audit procedures should be established for individual cases and compiled into work sheets.
- At the end of an onsite audit, audit results must be fully communicated to the head of the unit under audit. When necessary, improvement plans and expected date of completion for the unit under audit should be obtained, and auditors should track any actions of improvements.
5. Submission of Audit Report:
- Auditors should truthfully disclose errors and irregularities identified during inspection in audit reports, and
- conduct follow-up on these findings and produce them into a follow-up report.