2021-03-15

FSC Announces Amendments to E-Voting Rules and Management of Stock Affairs

Currently, absent shareholders may utilize the electronic voting system operated by the Taiwan Depository and Clearing Corp (台灣集中保管結算所) two days prior to a shareholders’ meeting.  However, listed companies announce e-voting results on the date of the shareholders' meeting.  As such, management of listed companies’ can know the results of e-voting before other shareholders.
 
Starting this year, due to the amendments to the Regulations Governing the Administration of Shareholder Services of Public Companies (公開發行股票公司股務處理準則), which will take effect soon, listed companies and stock affairs institutions will need to disclose the results of e-voting one day prior to the date of a shareholders’ meeting.
 
According to the Financial Supervisory Commission (FSC), this amendment will improve information transparency for investors and reduce the informational inequity that currently exists between listed companies’ management and their investors.
 
In addition, as it is a global trend for listed companies to hire professional institutions to handle stock affairs, the aforesaid amendments also require the Taiwan Depository and Clearing Corp to evaluate the qualifications of stock affairs institutions every three years, starting from 2022.
 
Presently, there are 20 stock affairs institutions in Taiwan, and 30 listed companies managing their own stock affairs.  The 30 listed companies handling their own stock affairs will also be evaluated.  If the 30 companies are found to be subject to sanctioning for violating the regulations, they will need to assign tasks to outside stock affairs institutions within two months.  In addition, listed companies that have already entrusted their stock affairs to outside institutions will be barred from regaining control over their own stock affairs.
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