The Taiwan Monthly

Nov. 2021

Corporate Governance

Corporate governance of listed companies continues to improve in 2021

According to the Taiwan Stock Exchange, multiple statistics on the quality improvement of corporate governance show that enterprises are prompted to closely monitor corporate governance and corporate social responsibility, and are guided to voluntarily adopt best practices due to the Corporate Governance Roadmaps, the Corporate Governance Evaluation, and various promotional measures.


In the aspect of “convention of annual general meetings (hereinafter “AGM”) ,” with the implementation of electronic voting, voting by poll is adopted for the AGMs of all listed companies, and more than 90% of the TWSE-listed companies filed the results on the same day the AGMs were held. In addition, the handbook and annual report of the shareholders' meeting are on average filed 31.08 days and 18.52 days, respectively, prior to the day of the AGM, significantly earlier than 21 days and 7 days which are required by the law.


On the "composition and operation of the board of directors," all listed companies established independent directors in 2017. As of the end of August 2021, 882 TWSE-listed companies had established an audit committee, accounting for 93% of the total. By the end of 2022, all listed companies will be required to set up an audit committee to replace supervisors.


On "Information Disclosure," 130 TWSE-listed companies filed their financial reports for the previous year before the end of February 2021, an increase of 33% over 2020. In this year, 635, 605 and 631 TWSE-listed companies provided an English version of their meeting handbook, annual report and annual financial report, respectively, accounting for more than 60% in total. In order to enhance information disclosure in English, and to conform to international practices, TWSE-listed companies have been required to report the English versions of their shareholders' meeting agenda handbooks, shareholders' meeting annual reports, and annual financial reports, in phases. Starting from 2023, all TWSE-listed companies shall report relevant information in English.


On "Non-financial Information Disclosure," a total of 418 listed companies have filed their corporate social responsibility report (“CSR report”) for 2020. Among them, 268 companies were mandated by the regulation and 150 were voluntary. It is estimated that about 431 listed companies will file their 2020 CSR report by the end of 2021.


The TWSE stressed that good corporate governance is the most important foundation for a sound capital market, and the key to attracting investors for long-term investment. In the future, the TWSE will continue to promote relevant corporate governance measures to strengthen the competitiveness of listed companies, and augment the quality of the overall capital market. Relevant corporate governance statistics can be found in the database of the Corporate Governance Center. (


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