1.Issuance of the “Scope of mandatorily adoption of candidate nomination system for the election of directors and supervisors”
To make it easier for shareholders to exercise their voting rights to realize shareholder activism and improve corporate governance, authorized by the proviso to Paragraph 1 of Article 192-1 and Paragraph 1 of Article 216-1 of Company Act, on April 25, 2019, the FSC announced the requirements that the candidate nomination system shall be adopted for the election of directors and supervisors of all TWSE and TPEx listed companies from January 1, 2021. Furthermore, the Articles of Incorporation of a company shall state that the shareholders shall elect the directors and supervisors among the nominees listed in the roster of candidates.
2.Assessment Program Launched to Evaluate the Implementation of the Treating Customers Fairly Principles by Financial Service Enterprises
To encourage financial services enterprises to value the Treating Customers Fairly (TCF) Principles and to help enterprises get a better picture of how they are doing in implementing the Principles, the FSC launched the Financial Service Enterprises Treating Customers Fairly Principles Assessment Program starting from 2019. The assessee in the first stage include banks, insurance companies, and 31 full-service securities firms.
The assessment program includes assessing the enterprises'' implementation of the nine TCF Principles and whether the enterprises'' boards of directors value the principles and take specific actions accordingly. The FSC required the enterprises to complete self-evaluations and submit the result by the end of April 2019 to the FSC, and then the FSC reevaluated the submitted result. The FSC expects that the assessment program will promote a deep-rooted business culture of treating customers fairly, and will encourage financial institutions to value the TCF Principles and ensure the equitable, reasonable, and fair treatment of customers during all stages of their transactions, so that the protections of financial consumers can be further fulfilled and enhanced.