Article 4 |
A TPEx listed company shall have not less than 5 directors on its board, and shall have independent directors numbering not less than 3 persons and furthermore not less than one-fifth of the board seats.
The board of directors of a TPEx listed company shall have not less than one director of different gender starting from 2024. However, if the term of office of the directors has not expired in 2024, this requirement may be applied starting from the expiration of the term of office of the directors.
A TPEx listed company shall have independent directors numbering not less than one-third of the board seats starting from 2027. However, if the term of office of the directors has not expired in 2027, this requirement may be applied starting from the expiration of the term of office of the directors. Additionally, for a TPEx listed company that has paid-in capital of NT$10 billion or more or is in the financial industry, this requirement shall apply starting from 2024. However, if the term of office of the directors has not expired in 2024, this requirement may be applied starting from the expiration of the term of office of the directors.
Starting from 2024, one-half or more of the independent directors of a TPEx listed company shall serve no more than three consecutive terms. However, if the term of office of the directors has not expired in 2024, this requirement may be applied starting from the expiration of the term of office of the directors. Starting from 2027, all of the independent directors of a TPEx listed company shall serve no more than three consecutive terms. However, if the term of office of the directors has not expired in 2027, this requirement may be applied starting from the expiration of the term of office of the directors.
If the board chairperson and the general manager or a person holding an equivalent position of a TPEx listed company are the same person or are spouses or relatives within the first degree of kinship, the company shall appoint not less than 4 independent directors by 31 December 2023. However, if the number of board seats exceeds 15, the number of independent directors so appointed shall be not than less than 5, and a majority of the directors may not serve concurrently as an employee or managerial officer. If the company's paid-in capital is less than NT$600 million, however, it is allowed to complete the appointment by 31 December 2025.
If a company's shares have no par value or have a par value other than NT$10 per share, for the calculation of the paid-in capital of NT$10 billion under paragraph 3, a net worth of NT$20 billion shall be substituted; for the calculation of the paid-in capital of NT$2 billion, a net worth of NT$4 billion shall be substituted; for the calculation of the paid-in capital of less than NT$600 million under paragraph 5, a net worth of NT$1.2 billion shall be substituted.
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Article 5 |
The main agenda items, operational procedures, required content of meeting minutes, public announcements, and other compliance requirements for board of directors meetings ("board meetings") of a TPEx listed company shall be subject to the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
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Article 6 |
A TPEx listed company shall, in accordance with the laws and regulations of the competent authority, expressly state in its articles of incorporation that it adopts a candidate nomination system for the election of directors.
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Article 7 |
The appointment of independent directors by a TPEx listed company and the exercise of their powers shall be subject to the Securities and Exchange Act and the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies.
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Article 8 |
If a TPEx listed company violates any of paragraphs 2 to 4 of Article 4, or the number of its directors falls below 5 due to the dismissal of a director for any reason, the company shall hold a new election or by-election at its next shareholders meeting. However, when the number of directors falls short by one-third or more of the board seats stated in its articles of incorporation, the company shall convene a special shareholders meeting within 60 days from the date of occurrence of the fact ("date of occurrence") to hold a by-election to fill the vacancies.
When the number of independent directors of a TPEx listed company falls below the required number prescribed in Article 4, paragraph 1 above or stated in its articles of incorporation, the company shall hold a by-election at its next shareholders meeting to fill the vacancies. When all independent directors are dismissed, the company shall convene a shareholders meeting within 60 days from the date of occurrence to hold a by-election to fill the vacancies.
A TPEx listed company in violation of Article 4, paragraph 5 shall correct the violation within 3 months from the date of its occurrence.
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