The Taiwan Monthly

ESG

Presenting the top 5% of performing listed companies of the 6th Corporate Governance Evaluation

The results of the 6th Corporate Governance Evaluation were announced in late April. To honor companies working hard to improve their corporate governance practices, the TWSE will present awards to 45 TWSE-listed companies and 35 TPEx-listed companies ranked in top 5% of the evaluation. Given the pandemic, TWSE is making changes to the award ceremony. The top 5% performing listed companies are invited to have their photos taken in front of the backdrop on the first floor of the TWSE IT Center between June 10 and June 12, 2020. As of May 29, 50% of the companies have made appointments. The TWSE has also invited FSC Chairman Dr. Tien-Mu Huang and TWSE chairman HSU Jan-Yau to record a speech. Companies that have ranked in top 5% for the sixth consecutive year are considered particularly outstanding, and will also be invited to have their acceptance speeches recorded. The speeches and photos will be made of a video to be placed on the Corporate Governance Center and WebPro websites. These outperforming listed companies will have their own copies delivered by mail.

 

The TWSE explains that the (2019) 6th Corporate Governance Evaluation contains 85 indicators in four aspects, which are the protection of shareholders' rights and the equal treatment of shareholders, the strengthened board structure and operations, the enhanced transparency, and the implementation of corporate social responsibility. These indicators are designed to measure the overall corporate governance of a company. The results of evaluation were published on April 30, 2020. Compared to the 5th evaluation, 13 TWSE-listed companies and 5 TPEx-listed companies are new members of Top 5%. The replacement ratio for TWSE-listed companies and TPEx-listed companies are 29% and 14% respectively.

 

The TWSE also explains that the indicators in the evaluation are reviewed every year, and constantly refined according to regulatory amendments and key government policies in Taiwan and international development. The updated indicators for the (7th) Evaluation were published on December 24, 2019. The Evaluation continues along the themes of stronger qualitative indicators, increased differentiation grading, and ongoing questionnaires to gather feedback. A number of basic compliance items and currently compulsory requirements are removed in response to regulatory changes. The Evaluation also takes into account of the "New Corporate Governance Roadmap (2018-2020)" and opinions proposed by outside parties. Meanwhile, the TWSE continues to urge companies to pay more attention to corporate governance, and designs different scores for differences of implementation as an incentive mechanism.

 

The TWSE has the goal to use the Corporate Governance Evaluation as a catalyst for shaping the corporate governance culture of listed companies. The practice of rewarding outstanding companies encourages healthy competition and experience sharing among listed companies. Having better corporate governance practices in Taiwan will contribute to a better image and stronger presence in the global capital market.

 

For further inquiries, please contact Ms. Li at 1008@twse.com.tw.