Important Measure February 2021
2021-04-08
Measures Adopted to Enhance the Quality of Shareholder Services and Increase the Transparency of E-Voting Results
Following up on plans set out in the “Corporate Governance 3.0 - Sustainable Development Roadmap”, the Financial Supervisory Commission (FSC) issued an amendment to the Regulations Governing the Administration of Shareholder Services of Public Companies on 2 March 2021. The amendment introduces measures designed to enhance the quality and neutrality of shareholder services (i.e., registrar and transfer services and shareholders' meeting services) and to increase the transparency of information on e-voting results as follows:
1. In step with the global trend for companies to outsource their shareholder services to professional institutions (shareholder services agents) and to promote consistency in the application and administration of regulations for entities handling shareholder services, the amended provisions now require that once a TWSE or TPEx listed company or Emerging Stock company has opted to outsource its shareholder services, it may not subsequently revert to handling these services in-house.
2. The amendment introduces a system for the evaluation of shareholder services institutions. The evaluation work will be implemented on a regular basis by the FSC's appointed institution, Taiwan Depository & Clearing Corporation (TDCC), beginning from 1 January 2022.
3. o enhance the transparency of information on e-voting results, companies or their shareholder services agents will be required to publicly disclose, by one day prior to the date of a shareholders’ meeting, statistics on the outcomes and numbers of votes cast by those shareholders who voted electronically.
4. The amendment expressly provides that companies which handle shareholder services via in-house and shareholder services agents, should complete the transfer of shareholder services matters within two months after being imposed a sanction by the FSC. If the company is unable to find an agent willing to take over as the successor for handling of the services, or if the FSC deems necessary, a shareholder services agent will be appointed by the TDCC to take over the handling of the services.
Following up on plans set out in the “Corporate Governance 3.0 - Sustainable Development Roadmap”, the Financial Supervisory Commission (FSC) issued an amendment to the Regulations Governing the Administration of Shareholder Services of Public Companies on 2 March 2021. The amendment introduces measures designed to enhance the quality and neutrality of shareholder services (i.e., registrar and transfer services and shareholders' meeting services) and to increase the transparency of information on e-voting results as follows:
1. In step with the global trend for companies to outsource their shareholder services to professional institutions (shareholder services agents) and to promote consistency in the application and administration of regulations for entities handling shareholder services, the amended provisions now require that once a TWSE or TPEx listed company or Emerging Stock company has opted to outsource its shareholder services, it may not subsequently revert to handling these services in-house.
2. The amendment introduces a system for the evaluation of shareholder services institutions. The evaluation work will be implemented on a regular basis by the FSC's appointed institution, Taiwan Depository & Clearing Corporation (TDCC), beginning from 1 January 2022.
3. o enhance the transparency of information on e-voting results, companies or their shareholder services agents will be required to publicly disclose, by one day prior to the date of a shareholders’ meeting, statistics on the outcomes and numbers of votes cast by those shareholders who voted electronically.
4. The amendment expressly provides that companies which handle shareholder services via in-house and shareholder services agents, should complete the transfer of shareholder services matters within two months after being imposed a sanction by the FSC. If the company is unable to find an agent willing to take over as the successor for handling of the services, or if the FSC deems necessary, a shareholder services agent will be appointed by the TDCC to take over the handling of the services.
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2021-04-08