Taiwan Stock Exchange - Rules & Regulations Directory

Article NO. Content

Title:

Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies 

Amended Date: 2020.02.13 
Categories: Corporate Governance
Article 18
    A corporate shareholder having controlling power over a TWSE/TPEx listed company shall comply with the following provisions:
  1. It shall bear a duty of good faith to other shareholders and shall not directly or indirectly cause the company to conduct any business which is contrary to normal business practice or not profitable.
  2. Its representative shall follow the rules implemented by its company with respect to the exercise of rights and participation of resolution, so that at a shareholders meeting, the representative shall exercise his/her voting right in good faith and for the best interest of all shareholders and shall exercise the fiduciary duty and duty of care of a director or supervisor.
  3. It shall comply with relevant laws, regulations and the articles of incorporation of the company in nominating directors or supervisors and shall not act beyond the authority granted by the shareholders meeting or board meeting.
  4. It shall not improperly intervene in corporate policy making or obstruct corporate management activities.
  5. It shall not restrict or impede the management or production of the company by methods of unfair competition such as monopolizing corporate procurement or foreclosing sales channels.
  6. The representative that is designated when a corporate shareholder has been elected as a director or supervisor shall meet the company's requirements for professional qualifications. Arbitrary replacement of the corporate shareholder's representative is inappropriate.

Interpretation:

Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw