The Roadmap intends to encourage active participation of companies and investors in corporate governance, through deepening corporate governance culture, enhancing board functions, strengthening information transparency, encouraging participation of external shareholders, and augmenting regulatory enforcement. Promoting the corporate governance promotion where it is brought about by top-down government action can be transformed into an action that is voluntarily emphasized by companies. Meanwhile, it also aims to have corporate governance culture rooted, create an investment-friendly environment and improve international competiveness.
To achieve the vision and lead corporate governance in Taiwan to be aligned with the international standards, five action plans are proposed as follows:
- Deepening corporate governance and CSR culture: To further incorporate these two elements into Taiwan markets through measures, such as introducing qualitative corporate governance evaluation indicators and differentiation in scoring, developing and promoting the CG 100 index and Taiwan ESG index, and promoting corporate governance concepts.
- Enhancing board functions: To strengthen the supervisory function of the board of directors and enhance board functions through expanding the establishment of audit committees, promoting the establishment of corporate governance professionals and introducing supplementary measures for circumstances such as wherein the same person serves as chairman and president (or the equivalent officer).
- Promoting shareholder activism: To facilitate external shareholders' participation in corporate governance by measures, such as increasing the attendance of institutional investors at shareholders meetings, promoting the adoption of the candidate nomination system for the election of directors and supervisors.
- Strengthening information transparency: To facilitate the transparency of general information disclosure in Taiwan securities markets by increasing the disclosure of English information by listed companies, enhancing information disclosure timeliness, comparability and content requirements and improving the disclosure quality of non-financial information.
- Augmenting regulatory enforcement: To strengthen the enforcement of laws and regulations by amending the Securities and Exchange Act to introduce relevant penalty provisions, amending TWSE and TPEx relevant corporate governance rules and regulations as well as finding diverse ways to enforce them in the case of violations, so as to be in line with the international trends and practical needs in Taiwan.