The Taiwan Monthly

Jul. 2024

ESG

The 10th corporate governance evaluation award ceremony will be proudly held on June 13

The Taiwan Stock Exchange will hold the “10th Corporate Governance Evaluation Awards Ceremony” jointly with the Taipei Exchange on June 13, 2024. In addition to publicly praising the top 5% of TWSE-listed and TPEx-listed companies, as well as the top 5% of TWSE- listed and TPEx-listed companies in the “market value from NTD5 billion to NTD10 billion” category in the evaluation, the top 1% of TWSE-listed and TPEx-listed companies in the “market value below NTD5 billion” category, and the most improved TWSE-listed and TPEx-listed companies will be added in. This is ceremony for commendation this year, in order to encourage small companies with good performance and companies actively improving their corporate governance, in the expectation that enterprises may work together to enhance the corporate governance of Taiwan’s capital market. At this ceremony, Chairperson Peng of the Financial Supervisory Commission will be invited to deliver a speech and serve as the award presenter, and the heads of the competent authorities and peripheral securities units will also be invited to partake.

 

The TWSE stated that the 10th (2023) Corporate Governance Evaluation comprehensively evaluated the overall corporate governance of enterprises based on 80 indicators, including “Protecting Shareholder Rights and Interests and Treating Shareholders Equitably,”  “Enhancing Board Composition and Operation,” “Increasing Information Transparency” and “Promoting Sustainable Development.” The evaluation results were announced on April 30, 2024. Compared with the 9th Evaluation, a total of 14 TWSE-listed companies and 7 TPEx-listed companies entered the top 5%, with turnover rates of 29% and 18%, respectively. This demonstrates the importance that companies attach to Corporate Governance Evaluation and their commitment to improving corporate governance. In addition, 8 TWSE-listed and 8 TPEx-listed companies ranked in the top 5% for ten consecutive terms, showing that they have been continuously deepening corporate governance and have formed it in their corporate culture.

 

    The TWSE further stated that the indicators of Corporate Governance Evaluation are reviewed every year, and references are made to domestic and foreign trends in corporate governance and sustainable development, regulations, policies, and feedback from various sectors for continuous improvement. The latest (11th) Corporate Governance Evaluation continues to follow the “Sustainable Development Action Plans for TWSE- and TPEx-Listed Companies (2023)” and “Capital Market Roadmap” announced by the competent authority. In addition to having the indicators for “promoting sustainable development” continuously added, their weights are increased year by year, and this category has become the aspect with the highest score proportion to guide enterprises to implement sustainable development.

 

The TWSE has the goal to identify companies that actively enhance corporate governance through the Corporate Governance Evaluation, and proactively implement governance measures that exceed regulatory requirements, and to guide a healthy competition plus mutual learning among enterprises by praising TWSE- listed and TPEx-listed companies with outstanding performance in various evaluation categories. All of this is to further deepen corporate governance in Taiwan, enhance sustainable corporate development, and ultimately augment the international competitiveness of Taiwan’s capital market.

 

For further information, please contact Mr. Fan at 1394@twse.com.tw