TAIWAN: TWSE Releases Guidelines and Templates to Enhance Corporate Governance

Wednesday February 19 2020

On 17^th February 2020, the Taiwan Stock Exchange (TWSE) published guidelines and templates to enhance continuing emphasis on corporate governance following the amendments of four corporate governance regulations, which were the “Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies”.

The TWSE states that in the interest of stronger corporate governance, it advises TWSE listed companies to, in addition to complying with the applicable regulations, look at the latest amendment of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and adopt the appropriate measures, which include stock trading control that comes into effect upon insider knowledge of financial statements or related business results, establishment of a nomination committee, and implementation of an intellectual property management system.

The TWSE also made changes to the “Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies” by following the direction in the New Roadmap and the amended regulations above and taking into account important global trends. Key changes include:

1. TWSE/TPEx listed companies are required to observe the materiality principle in their assessments of risk in environmental, social, and corporate governance issues relevant to their business activities, and devise risk management policies and strategies accordingly.
2. TWSE/TPEx listed companies should evaluate the potential risk and opportunities in climate change with regard to the present and future of their business, and take appropriate action to counter climate change issues.
3. TWSE/TPEx listed companies should take inventory of their greenhouse gas emissions, water consumption, and total waste produced, and implement policies on energy efficiency and carbon reduction, greenhouse gas reduction, water reduction, or waste management.
4. TWSE/TPEx listed companies should implement and follow reasonable employee benefits (including pay, leave, and other benefits), and ensure business performance or results are reflected adequately in employee remuneration.
5. TWSE/TPEx listed companies should implement supplier management policies to require suppliers observe certain regulations on environmental protection, occupational health and safety, or labor or human rights.

Click on the above link for further information.