The Taiwan Monthly

Aug. 2018

Corporate Governance

Quality of Shareholders' Meetings of Listed Companies has been raised in 2018

The Taiwan Stock Exchange (TWSE) is pleased to share that after more than five years of promotional and advocacy efforts starting from the implementation of the "Corporate Governance Evaluation System" in 2014, quantitative data for this period has shown significant progress.

 

According to statistics on shareholders' meetings, all listed companies have adopted e-voting since the beginning of 2018. More than 70% of the TWSE- listed companies (a total of 663) now have nomination systems for election of directors and supervisors in their Articles of Association, which is a 14% increase compared to only 583 companies in 2017 or a dramatic 230% increase compared to 201 in 2014. Following mandatory adoption of e-voting, all TWSE-listed companies have adopted poll voting in 2018, which increased by 257% compared to 257 in 2014. In addition, 874 TWSE-listed companies filed poll voting results on the same day, which is a 900% increase compared to 87 companies in 2014.

 

The TWSE stated that in addition to the substantial quality improvement for shareholders' meetings, all other items promoted by the evaluation system have also shown strong results. In terms of the “Board of Directors Structures and Operations”, it was mandatory to implement independent directors for all listed companies in 2017. 554 TWSE-listed companies had also set up audit committees by June 2018, which is equivalent to 60% of TWSE-listed companies and representing a 226% increase from 170 at the end of 2014.

 

For "information disclosure", 82 TWSE-listed companies filed their 2017 annual financial reports one month earlier than the March 2018 deadline, an increase of 273% compared to 22 in 2014. This is important for shareholders as it allows them further time to make more informed investment decisions, especially for foreign shareholders as English AGM notices had a big jump in 2018 from 387 to 450. The number of companies releasing English agendas also increased from 232 to 267; and the number of companies issuing English annual reports also rose from 177 to 193. Information transparency has clearly improved.

 

In terms of "non-financial information disclosure," a total of 241 TWSE-listed companies have filed their CSR reports to the M.O.P.S as of July 17, 2018. Among them, 206 were mandated by the regulations and 35 were voluntary. There are also 54 listed companies that can postpone their CSR report issuance deadlines until December 31, 2018 pursuant to the rule. Compared to the 342 CSR reports filed in 2017, at least 355 listed companies are anticipated to submit their CSR reports by the end of 2018.

 

The “2013 Corporate Governance Roadmap” has been effectively implemented by 2017. In order to improve the development of corporate governance and to accelerate implementation of international corporate governance standards,  the Financial Supervisory Commission has launched the New Corporate Governance Roadmap (2018-2020). The TWSE emphasizes that a good corporate governance practice is crucial to a sound capital market and the key to attracting long-term investors. The TWSE will cultivate the feedback from investor groups in order to improve the quality of the capital market and listed company competitiveness. Corporate governance-related statistics can be found on the Corporate Governance Center’s Statistics website (http://cgc.twse.com.tw/).

 

Items / Number of companies

2018

Growth%

5-Year

Growth%

2017

Growth%

2016

Growth%

2015

2014

English Information

Filing English AGM Notices

450

16%

516%

387

47%

264

98%

133

73

Filing English Meeting Handbook at the AGM

267

15%

234%

232

27%

183

40%

131

80

Filing English Annual Report

193

9%

141%

177

23%

144

35%

107

80

AGMs

Adoption of electronic voting

917

26%

383%

728

53%

475

86%

256

190

Adoption of poll voting at the AGM

917

17%

257%

787

26%

627

60%

393

257

Disclose the numbers of votes cast "For" and "Against" as well as the number of "Abstentions" on each motion reported on MOPS on the same day of the AGM

874

19%

905%

735

27%

578

63%

354

87

Held the AGM before the end of May

114

25%

165%

91

3%

88

42%

62

43

The average filing date of the Meeting Handbook prior to the day of the AGM

(avg. date) 

30.78

-

20%

30.88

2%

30.37

6%

28.66

25.70

The average filing date of the Annual Report prior to the day of the AGM (avg. date) 

17.88

-2%

24%

18.21

-

18.15

13%

16.13

14.38

Boards

Adoption of a nomination system for directors and supervisors in their Articles of Association

663

14%

230%

583

38%

424

32%

322

201

Set up an Audit Committee

554

17%

226%

474

45%

327

35%

243

170

Set up independent directors

917

1%

88%

907

15%

787

23%

638

488

Information Disclosure

Listed companies reporting their audited annual financial results within two months of the end of the accounting period

82

1%

273%

81

16%

70

49%

47

22

Non-Financial Disclosure

Filing CSR Reports-7/17

241*

-

40%

342

24%

275

3%

267

171

* 355 TWSE-listed companies are anticipated to submit their CSR reports by the end of 2018

 

 For further inquiries, please contact Ms. Cheng at 1209@twse.com.tw .