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To Prevent Covid-19 Clusters, Companies Are Required to Follow Pandemic Prevention Rules and Arrange Proper Schedules for the Distribution of Shareholders’ Meeting Souvenirs

To prevent Covid-19 clusters that may be caused by the holding of physical shareholders’ meetings, the Financial Supervisory Commission (“FSC”) has reported to the Central Epidemic Command Center (“CECC”) for approval and announced on 20 May 2021. This stated that all public companies shall suspend the convening of shareholders’ meetings during 24 May to 30 June 2021. Pursuant to the FSC-announced “Measures for Public Companies to Postpone Shareholders’ Meetings for Pandemic Prevention”, the originally scheduled shareholder services’ preparation procedures relating to shareholders’ meetings, such as operations for meeting notices, proxy solicitation, and e-voting, shall still be carried out as scheduled until the day immediately preceding the originally scheduled shareholders’ meeting date.
  The distribution of shareholders’ meeting souvenirs is a matter within the scope of company autonomy. However, to reduce the risk of clusters that may be caused by shareholders appearing in person to collect these souvenirs, the Taiwan Depository & Clearing Corporation (“TDCC”), following the FSC’s instruction, conducted an awareness meeting by video conference on 28 May 2021. This requested Taiwan Stock Exchange (“TWSE”) and Taipei Exchange (“TPEx”) listed companies that handle their own shareholder services plus shareholder services’ agents handling these services for such companies ("shareholder services units") to postpone or spread apart the dates for the distribution of shareholders’ meeting souvenirs and to strictly implement pandemic prevention measures.
  The FSC urges public companies to postpone the distribution of souvenirs until Covid-19 is under control if the operation merely involves on-site delivery of souvenirs to shareholders (including shareholders participating in e-voting). However, if there is an explicit need to make the distribution in the meantime, pandemic prevention measures shall be adopted at all venues for (1) the distribution of shareholders’ meeting souvenirs, or (2) solicitation of proxies for public companies in compliance with the applicable pandemic prevention rules of the competent pandemic prevention authority, Taiwan Centers for Disease Control, and of the local governments where the distribution or solicitation venues are located.
  Given the current Covid-19 development, pandemic prevention requires solidarity and the cooperation of all people throughout Taiwan, and all capital market participants are urged to work together during this difficult time. The FSC has also directed the TDCC to reinforce its efforts in examining whether shareholder services units truly act in compliance with the “Regulations Governing the Administration of Shareholder Services of Public Companies”, the relevant rules establishing standards for the internal control systems of shareholder services units, the pandemic prevention rules of the CECC and local governments, and other relevant requirements, and include the examination as part of the TDCC’s evaluation of the shareholder services units.
Point of Contact: Mr. Chen, Section Chief, Securities Trading Division, Securities and Futures Bureau
Tel: 02-2774-7310

For any questions, please e-mail to: FSCMAIL

Visitor: 459   Update: 2021-06-07