2013-05-13
The Applicable Scope of Compulsory Appointment of Independent Director is Proposed to be Increased Starting in 2014
The Financial Supervisory Commission (“FSC”) plans to increase the applicable scope of the compulsory appointment of the independent director for the TWSE/GTSM Listed Companies Starting in 2014. That is, the capital threshold for the compulsory appointment of the independent director in the TWSE/GTSM Listed Companies will be decreased from NTD ten (10) billion to five (5) billion. It is estimated that approximately 100 TWSE/GTSM Listed Companies will be affected by FSC’s new policy.
According to the current Securities and Exchange Act, TWSE/GTSM Listed Companies that are required to appoint independent directors shall not appoint less than two independent directors in number and not less than one-fifth of the total number of directors.
FSC indicated that the increase in the applicable scope of the compulsory appointment of the independent director is to promote sound practices of corporate governance, preparation work to increase the scope of the applicability of the audit committee requirement, and strengthening the compensation committee.
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