upn-taiwan stock-01-17-12- Back to List The TWSE is increasing efforts in its promotion toward listed companies on wider adoption of electronic voting Publish Date︰2015-01-12 17:19 The Taiwan Stock Exchange (TWSE) indicates that, because TWSE/GTSM listed companies

Back to List The TWSE is increasing efforts in its promotion toward listed companies on wider adoption of electronic voting Publish Date︰2015-01-12 17:19 The Taiwan Stock Exchange (TWSE) indicates that, because TWSE/GTSM listed companies with over $2 billion of paid-in capital and over 10,000 shareholders are required to adopt electronic voting for shareholders’ meetings from January 1, 2016, the TWSE is providing an “Information session for electronic voting and nomination system for candidates of directors and supervisors” today and tomorrow to promote better understanding of regulations and practices of electronic voting. The TWSE is inviting the FSC, GTSM, Taiwan Depository and Clearing Corporation (TDCC), Public Company Shareholder Services Association, and 240 TWSE/GTSM listed companies that meet the conditions of paid-in capital and shareholders listed above. According to the supervisor of Corporate Governance Department at the Taiwan Stock Exchange, Taiwan has been planning for the promotion of electronic voting as suggested by the Executive Yuan’s “Policy Agenda and Action Plan to Strengthen Corporate Governance ” in 2003. In 2005, the government amended Article 177-1 of Company Act, granting statutory authority to electronic voting. Companies may adopt electronic voting voluntarily. As international exposure expands and the use of technology becomes more prevalent, and to resolve the issue of clustering of shareholders’ meeting in Taiwan, there is increased demand for increasing the channels through which shareholders can exercise their voting rights and encouraging shareholders to participate in the operation of corporations. Therefore, the regulator, FSC, has required certain large TWSE/GTSM listed companies to adopt electronic voting since 2012. Additionally, with the promotion of the adoption of the nomination system in the election of directors and supervisors, in 2014, 80% of the companies required to adopt electronic voting have stated in their articles of incorporation that the election of directors and supervisors is processed with the nomination system. The high adoption of the nomination system by companies adopting e-voting can effectively reduce abstained votes cast by investors for the motion to elect directors and supervisors through electronic voting system. Electronic voting also helps shareholders to exercise their rights of shareholders and improve the standard of corporate governance in Taiwan. According to the TDCC, the use of electronic voting is increasing. For example, in 2014, 208 companies have adopted electronic voting (including 192 that are required to use electronic voting and 16 that do so voluntarily). It is expected that more than half of TWSE/GTSM listed companies will adopt electronic voting by 2016. The adoption of electronic voting not only improves the level of corporate governance but also helps the implementation of shareholder activism. The representative from the Public Company Shareholder Services Association shares their experience and suggests that, when there are shareholders voting against or abstentions through electronic voting, the company should discuss and vote motion by motion on the day of shareholders’ meeting. This approach is more clear-cut. The nomination system for director and supervisor candidates is recommended to reduce the percentage of invalid/abstained votes cast by shareholders.