The Asian Corporate Governance Association ("ACGA") released its preview of "CG Watch 2023" on December 13 2023, an investigation and rating survey on corporate governance performances in the Asian markets. Among 12 regional markets, Taiwan ties with Singapore for third place, trailing behind Australia and Japan, with a score of 62.8 points. This marks an improvement from Taiwan's previous best performance in 2020, where it ranked one spot lower.
According to ACGA’s preview of the upcoming "CG Watch 2023", Taiwan's significant recent achievements in corporate governance include:
Ⅰ.Over the past decade, Taiwan has had a series of "CG roadmaps" and, in 2022, introduced "Sustainable Development Guidemap". Clear policy guidelines from regulatory authorities have been identified as key factors surpassing those of other markets. Additionally, in 2021, the establishment of the "Commercial Court" to handle disputes related to company law and securities and exchange regulations marked a significant development. Taiwan scored second place in the evaluation categories of "Government and Public Governance," "Regulators," and "Auditors and Audit Regulators". Furthermore, there have been notable improvements in the categories of " Auditors and Audit Regulators " and "CG Rules," with respective score increases of 7% and 5% compared to the previous evaluation.
Ⅱ.The threshold for substantial shareholding disclosure and announcement has been lowered from 10% to 5%, aligning with international standards. Measures to strengthen control over director stock trading and enhance the quality of information disclosure, including director remuneration and non-audit fees, have been implemented.
ACGA has also proposed several recommendations regarding corporate governance issues in Asian markets, such as strengthening controls on related-party transactions, enhancing the quality and relevance of CG codes of best practices and investor stewardship codes, and improving disclosure of director and executive remuneration information. In response to the content and recommendations of the ACGA report, the FSC will further analyze corporate governance reform measures. Looking ahead, the FSC will continue to follow the "Sustainable Development Action Plan" and the " Roadmap for Taiwan listed companies to align with IFRS Sustainability Disclosure Standards " to guide companies in establishing a complete ecosystem for sustainable development and continuously enhancing corporate governance. The FSC will assist listed companies in aligning with international sustainability standards, supervise stock exchanges in establishing ESG digital platforms, databases, and ESG evaluations, and use digital technology and market forces to guide companies in deepening sustainable development, to create an even more competitive capital market in Taiwan.