In Taiwan, listed companies usually hold their annual general meeting (AGM) in May or June in order to present to their shareholders their performance and outlook, as well as to answer shareholder questions.
The problem is that many shareholders have found it difficult to attend the AGMs and are therefore unable to exercise their rights. This is because some listed companies schedule their AGMs according to the lunar calendar, choosing specific dates that are said to be auspicious. Despite widespread criticism that such practices breach shareholders’ rights and interests as well as infringe on corporate governance principles, in the past few years it has remained common to see hundreds of listed companies holding their AGMs on the same date. On June 13, 2008 there were, believe it or not, more than 600 listed companies holding an AGM.
However, consulting the lunar calendar to set a date for an AGM could just be a way for companies to discourage shareholders from attending. A conspiracy theory might propose that companies dislike “unwelcome shareholders” making embarrassing statements or throwing challenging questions at executives during meetings. Therefore, scheduling all the AGMs on the same date could either exhaust shareholders or make it impossible for them to attend.
To find a solution to this scheduling problem, the Financial Supervisory Commission (FSC) has since last year allowed only 200 listed companies to hold an AGM on any single date. Beginning this year, absentee shareholders can also use electronic voting to have a say on who sits on the board and other matters that affect their interests. Based on the FSC’s proposal, listed companies that have market capitalization of NT$10 billion (US$347.6 million) and above would be required to adopt electronic voting measures from next year.
These efforts to help shareholders deal with AGM scheduling are just the first steps toward improving corporate governance. However, a draft amendment to the Company Act (公司法) passed by the Legislative Yuan’s Economics Committee on Thursday may have achieved the opposite effect, as the amendment restricts shareholders from raising motions during an AGM if they own less than 1 percent of shares in the listed company.
The spirit of the amendment is to maintain order at listed companies’ AGMs and to prevent the meetings from descending into chaotic scenes with “unwelcome shareholders” deliberately tabling numerous motions to disrupt the meetings. The government has claimed that Taiwan is not the only country to restrict minority shareholders from raising motions during AGMs; many foreign countries have adopted similar measures already. Unfortunately, this amendment overlooks the fact that the Taiwanese stock market is made up of mostly small and individual investors, while institutional investors have become the backbone of foreign stock markets.
Second, the Company Act requires shareholders to submit proposals for inclusion in the meeting agenda days before scheduled AGMs and under certain procedures. The law has already restricted shareholders from tabling motions on important issues at AGMs, thus the draft amendment only further limits the rights of minority shareholders; it is not designed to maintain order at the meetings, but to protect the listed companies.
On Friday, the Ministry of Economic Affairs’ commerce department said that minority shareholders could still raise motions at AGMs as long as they collectively own more than a 1 percent share in the company. Yet the department’s response just showed how bureaucratic it is.
What makes this amendment even harder to comprehend is that the government is working to amend the law to restrict the rights of some shareholders — just because of the dislike of other unwelcome shareholders. It serves as a reminder that there is still room to improve corporate governance and the government’s mindset in this country.
An elderly mother and her daughter were found dead in Kaohsiung after having not been seen for several days, discovered only when a foul odor began to spread and drew neighbors’ attention. There have been many similar cases, but it is particularly troubling that some of the victims were excluded from the social welfare safety net because they did not meet eligibility criteria. According to media reports, the middle-aged daughter had sought help from the local borough warden. Although the warden did step in, many services were unavailable without out-of-pocket payments due to issues with eligibility, leaving the warden’s hands
Japanese Prime Minister Sanae Takaichi on Monday announced that she would dissolve parliament on Friday. Although the snap election on Feb. 8 might appear to be a domestic affair, it would have real implications for Taiwan and regional security. Whether the Takaichi-led coalition can advance a stronger security policy lies in not just gaining enough seats in parliament to pass legislation, but also in a public mandate to push forward reforms to upgrade the Japanese military. As one of Taiwan’s closest neighbors, a boost in Japan’s defense capabilities would serve as a strong deterrent to China in acting unilaterally in the
Taiwan last week finally reached a trade agreement with the US, reducing tariffs on Taiwanese goods to 15 percent, without stacking them on existing levies, from the 20 percent rate announced by US President Donald Trump’s administration in August last year. Taiwan also became the first country to secure most-favored-nation treatment for semiconductor and related suppliers under Section 232 of the US Trade Expansion Act. In return, Taiwanese chipmakers, electronics manufacturing service providers and other technology companies would invest US$250 billion in the US, while the government would provide credit guarantees of up to US$250 billion to support Taiwanese firms
Indian Ministry of External Affairs spokesman Randhir Jaiswal told a news conference on Jan. 9, in response to China’s latest round of live-fire exercises in the Taiwan Strait: “India has an abiding interest in peace and stability in the region, in view of our trade, economic, people-to-people and maritime interests. We urge all parties to exercise restraint, avoid unilateral actions and resolve issues peacefully without threat or use of force.” The statement set a firm tone at the beginning of the year for India-Taiwan relations, and reflects New Delhi’s recognition of shared interests and the strategic importance of regional stability. While India
RSS