reportonprojectforplanning,promotion.docVIP

REPORT ON PROJECT FOR PLANNING, PROMOTION AND IMPLEMENTATION OF CORPORATE GOVERNANCE SYSTEM IN TAIWAN In order to reform Taiwan’s corporate governance system through integrated planning and gradual movement, the Securities and Futures Commission (which has become Securities and Futures Bureau since July 1, 2004) has launched “The Project for Planning, Promotion, and Implementation of Corporate Governance System in Taiwan.” In July 2003, “The Group for Implementing Corporate Governance” (the “Group”), comprising of representatives from Taiwan Securities Exchange Corporation (“TSEC”), GreTai Securities Market (“GTSM”), Securities Futures Institute (“SFI”), other competent authorities, industries concerned, and the academic institutions, were organized to meet on a monthly basis to propose various plans aiming at establishing a corporate governance system consistent with the international trend and unique domestic needs. The Group has been established for over a year, and the aggressive approach it adopted has not only deepened the reform of corporate governance, but also implemented and completed 27 action items as elaborated as below: Assistance to Enterprises on Establishment of their Corporate Governance Culture and System (1) Review and Revision of “Corporate Governance Best-Practice Principles for TSEC/GTSM Listed Companies”: By reference to comments and suggestions from all relevant government agencies and private sectors, the Group reviewed the proposed “Corporate Governance Best-Practice Principles for TSEC/GTSM Listed Companies,” culminating the promulgation of its amended version on December 31, 2003. Furthermore, the Group announced on February 16, 2003 six reference samples including the rules governing board meetings. To help the industries concerned better understand corporate governance system, the Group held a series of educational programs and seminars. (In particular, promotional activities on reference samples of Corporate Gove