Newsletter
New Rules Requiring Companies to Have Independent Directors
According to the directive (Ref. No. 1020053112) issued by the Financial Supervisory Commission on 31 December 2013, with immediate effect, each of the following companies must have at least two independent directors, representing at least one-fifth of all its directors: (1) financial holding companies, banks, bills finance companies, insurance companies, securities investment trust enterprises, integrated securities firms, and futures commission merchants listed on the Taiwan Stock Exchange (TWSE) or traded Over-The-Counter (OTC), that have issued stocks in accordance with the Securities and Exchange Act; and (2) TWSE/OTC listed non-financial enterprises.
This requirement does not apply to a TWSE/OTC listed non-financial enterprise with a paid-in capital of NT$10 billion or less until the term of its incumbent directors and supervisors expires. However, if the term of its incumbent directors and supervisors will expire in 2014, such requirement will not apply until the term of the new directors and supervisors to be elected in 2014 expires.