As the banks regulated by the Financial Holding Company Act and the Banking Act and the insurance firms (referred to as “financial institutions”) regulated by the Insurance Act tend to have a large capital and there are big variances in the amount of capital stocks, the FSC proposes to promote corporate governance in response to shareholder activism and compliance with equal rights of shares. This is in consideration of the circumstances where financial institutions with different amounts of capitals convening shareholders'' meetings to elect directors or supervisors, individual shareholders meeting certain criteria may act as solicitors of proxies to participate in the election of directors or supervisors. The FSC proposes to amend Subparagraph 1, Paragraph 1, Article 5 of the Regulations Governing the Use of Proxies for Attendance at Shareholder Meetings of Public Companies. With respect to the qualifications of solicitors in shareholders'' meeting convened by financial institutions, in addition to those who have continuously held 0.5% or more of the total number of issued shares of the company for at least one year, the individual shareholders who have met the threshold of holding 2 million shares of the total number of issued shares of the company may act as the proxy solicitors.

     The FSC said that the amendment draft will be published in the Executive Yuan Gazette, and the FSC''s website will have the full description of the draft and a comparison table for the original and revised articles available.  For any suggestions, please visit "Advance Notice Forum for Regulation Draft" on FSC''s Laws and Regulations Retrieving System (http://law.fsc.gov.tw/) to leave opinions or contact the Securities and Futures Bureau of the Financial Supervisory Commission.

 

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