2010-07-19

Taiwan to Publish Business Ethics for Corporate Governance

Taiwan’s Financial Supervisory Commission under the Executive Yuan (FSC) plans to release a new publication, entitled Business Ethics for Corporate Operation (Business Ethics). In this publication, Taiwan Stock exchange (TSE) and Over-the Counter (OTC) listed companies will be required not to give or accept bribes, and will be required to stipulate methods of anti-corruption in their internal regulations.

According to the FSC, Business Ethics can be viewed as an anti-corruption guide for corporations. Business Ethics will cover issues such as preventing conflicts of interest and bribery, handling confidential information, reasonable payments, Board of Directors operations, and internal controls.

In relation to bribery prevention, as bribery may result in unfair competition, Business Ethics urges listed companies to require their employees to follow anti-corruption measures. It also requires that any monetary contribution to politicians should comply with the Political Donations Act.

Other requirements are that listed companies should conduct their business fairly, and should stipulate regulations for internal controls so as to prevent bilking or fraud in the companies, and should create a suitable mechanism for preventing confidential information from being disclosed.
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