Professional guidance and operational participation
Depending on the expertise of the independent directors, they are invited to participate in the discussion and guidance of specific issues.
- To discuss the strategic issues regarding the overall development of the Company every year, so that the strategic thinking can be more comprehensive and thorough in the process of strategy discussion and formation. In year 2021, the independent directors were more fully involved in the guidance.
- To participate in the principles of fair treatment of customers promotion committee to help promote the principles of fair treatment of customers and the culture of valuing financial consumer protection.
- To participate in IRB working group meetings to provide guidance on the application of model evaluation in business, in order to facilitate the monitoring of IRB in corporate governance, as a result to align with international standards and enhance the risk control culture.
- To actively direct the "customer experience improvement project" to help improve customer experience and develop innovative services.
- To assist in planning and serving as a lecturer for supervisors and new employees training courses.
Diverse board members
All 5 independent directors with different professional backgrounds are equipped with the knowledge, skills, literacy, and skill sets necessary to perform their duties. The board currently has 2 female directors. Its proportion
of female directors is higher than the average among all TWSE/TPEx listed companies. The level of female involvement in decision-making will be increased in accordance with the principle of diversity in the future.
Competent functional committees
To ensure an effective Board of Directors and refine the quality of board decisions, the Audit Committee, the Corporate Governance and Nomination Committee, the Remuneration Committee, the Board Strategy Development Committee, the Sustainable Development Committee and the Risk Management Committee are created by authority and function under the Board of Directors and are responsible for deliberating proposals and major issues in the economy, the environment, the society and risks.
Protection of shareholders' rights and interests
The Company continues to protect the interests of shareholders and pursue sustainable development. In addition to constantly and proactively reporting the "specific promotion plan for sustainable development", "communication between the Audit Committee and the head of internal audit", "adjustment of certified public accountants" and "remuneration policy for directors and managers" at the shareholders' meetings, the "report on the remuneration policy for directors and managers" at the annual shareholders' meeting of year 2022 not only reported the procedures for considering the remuneration standards for directors and managers of the Company, but further enacted related remuneration rules for directors in accordance with the strategic objectives of the latest version of "the corporate governance blueprint", and added new remuneration brackets for individual directors.
Board Effectiveness
Evaluation of board performance
Internal evaluation
The Company completed the 2021 board and functional committee performance evaluation. The results are presented below:
1.The board actively partakes in the Company's operations; fulfills its duties to instruct and supervise the Company's strategies, major business activities, and risk management practice, and establishes suitable internal control system. According to the evaluation result, 49 items were rated "excellent", total scoring rate of 100%.
2.The overall performance of the functional committees was in line with corporate governance principles. The functional committees served their purposes as intended, effectively making the board more effective.
The Company presented the results of the 2021 director performance evaluation on March 11, 2021, based on self-assessments conducted by the directors themselves and peer reviews
1.Self-assessment score: 99.53%.
2.Overall self-assessment score: 99.47%.
External evaluation by professional institutions
The Company has been devoted to planting corporate governance culture in the company system and daily operation. The Company has commissioned external professional organizations to conduct performance evaluation on the board every three years and to execute corporate governance evaluation certification every two years. In 2018 and 2020, the Company was awarded the CG6011 (2017) and CG6012 (2019), the corporate governance system evaluation, "exceptional" certification, and the relevant recommendations were listed as priority corporate governance improvement plans.
