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Article 11
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(Establishment of a risk management committee)
To ensure sound and strong risk management, it is advisable for a TWSE or TPEx listed company to take into account its scale, business features, risk nature, and operating activities and establish a risk management committee under the board of directors to oversee the operation of risk management. It is advisable that a majority of the committee members be independent directors and that the committee be chaired by an independent director.
The risk management committee is accountable to the board of directors and shall submit all proposals to the board of directors for resolution.
The risk management committee shall enact a committee charter, for which a resolution of the board of directors shall be passed. Said charter shall include the number, tenure, and authoritiesof members, rules of procedure of the committee, and resources to be made available by the company when the committee exercises authority.
A TWSE or TPEx listed company may also consider its scale and replace the functions of the risk management committee with other functional committees or task forces.
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