To make it easy for shareholders to exercise their voting rights for the purpose of implementing shareholder activism and continue to improve corporate governance, the Financial Supervisory Commission is planning to expand the number of companies required to adopt electronic voting as authorized by Article 177-1-1 of the Company Act. This measure will be unveiled as an administrative procedure in the coming days and will come into effect beginning in 2016.
Its major contents are as follows: According to regulations specified in Article 177-1 of the Company Act, when companies with more than NT$2 billion in paid-in capital and more than 10,000 shareholders on their list of shareholders from the previous cut-off day for the transfer of shares convene shareholders’ meetings, such companies are required to include electronic voting as one of the methods of exercising voting rights.
To implement electronic voting and improve the protection of shareholders’ rights, companies not adopting electronic voting pursuant to the regulations mentioned above will be disclosed in the corporate governance section of the Market Observation Post System. In addition, such a situation will constitute a condition for rejecting applications to offer and issue securities made by such companies under the Regulations Governing the Offering and Issuance of Securities by Securities Issuers.
Additionally, offering electronic voting as a way to exercise voting rights in companies facilitates the exercise of shareholders’ rights and improves their protection. To encourage companies making initial public offerings to value corporate governance, the Financial Supervisory Commission is supervising the Taiwan Stock Exchange and GreTai Securities Market in the revision of the applicable regulations and related measures. These regulations will specify that, beginning from 2016, companies making initial public offerings must include electronic voting as one of the methods of exercising shareholders’ voting rights in their articles of incorporation.

Securities Trading Division, Securities and Futures Bureau
Phone: +886-2-2774-7103
If you have a question, please send a message to:
http://fscmail.fsc.gov.tw/FSC-SPS/SPSB/SPSB01002.aspx