Premier calls on government to reinforce corporate governance
By Queena Yen ,The China Post
December 27, 2013, 12:09 am TWN
TAIPEI, Taiwan -- Premiere Jiang Yi-huah (江宜樺) instructed the Financial Supervisory Commission (FSC, 金融監督管理委員會) of the Executive Yuan at the Cabinet's weekly meeting yesterday to reinforce corporate governance in order to prevent illegal acts by major companies.
According to the Executive Yuan, the FSC reported on a plan for strengthening corporate governance and provided five measures to do so, including building up a corporate governance culture, promoting activism among stockholders, enhancing the function of the board of directors, revealing corporate non-financial information and reinforcing the practice of legal affairs.
Jiang said these measures are moving in the right direction to elevate current corporate governance conditions and to develop an important foundation for sustainable corporate management, as well as a solid capital market.
The premiere also stated that some of the methods in the plan might impact corporations and stock holders. Therefore, Jiang instructed the FSC to put more emphasis on advocacy in order to successfully put the plan into practice.
On the topic of the recent food safety and wastewater disposal issues, Jiang said the government should not only complete an amendment to the relevant regulations and strengthen inspections, but should also encourage corporations to fulfill their social responsibilities.
FSC Chairman Tseng Ming-tsung (曾銘宗) told local media that the FSC plans to publish corporate non-financial information starting next year. In addition, the FSC will begin to amend the relevant regulations next year and publish an evaluation method for corporate governance in 2015. The FSC therefore hopes to ensure that listed companies manage their businesses with integrity and shoulder more social responsibility in the future.