Telecom Voting System for Shareholders May be Reality in 2012

Taipei, March 1, 2011 (CENS)--Taiwan's Financial Supervisory Commission (FSC) recently approved to gradually introduce the compulsory telecom voting system during shareholders meetings to listed firms on the Taiwan Stock Exchange (TWSE) and the Over-the-counter Securities Market.

The FSC resolutions stipulate that initially the firms with capitalization above NT$10 billion (US$340.13 million) and financial firms must abide by the compulsory telecom voting system, with the new rules to be approved in the shareholders meeting in 2012 at the earliest.

FSC says that initially 100-odd listed firms, which are held by many shareholders, will have to abide by the new system.

The telecom voting system will enable shareholders to protect their interests, including raising proposals and choosing new board directors, through email without having to personally attend many shareholders meetings, an impossible task for some are held on the same day.

The FSC has been promoting the telecom voting system for years but to no avail. The FSC statistics show only seven firms adopted the new system in 2010, most of which being unlisted.

Liu Lien-yu, professor of law at the National Chengchi University, said the more listed firms adopt the system the better, adding that many European and American nations adopt the telecom voting system, even China, which enables improved corporate governance.