Financial institutions, such as insurers, banks, securities brokerages, and listed companies with paidup capital of at least NT$10 billion (US$337 million) would from next year be required to set up positions for the corporate governance officers within their organisations.
People qualifying for the positions would include lawyers and accountants, as well as managers with legal and financial experience, according to a report in The Taipei Times.
Different from audit and compliance officers, corporate governance professionals would need to have strong integration and coordination abilities to establish an effective corporate governance network fortified by gatekeepers, such as audit and compliance officers; external supervisors, such as accountants and credit rating agencies; and major stakeholders, including employees and business partners.
Unlike audit and compliance officers, who ensure that companies do not engage in unlawful activities, corporate governance officers would design and develop a new corporate culture with better governance built into it.
The appointment of corporate governance officers is part of action plans proposed by the Financial Supervisory Commission in its Corporate Governance Roadmap 2018-2020. The officers are to support boards of directors by providing information and assistance; helping in the implementation of a candidate nomination system for the election of directors and supervisors; and promoting qualitative indicators for corporate governance evaluations.
Meanwhile, the number of financial companies in the top 5% of the annual corporate governance evaluation by the Securities and Futures Institute has fallen from 11 last year to five this year. King’s Town Bank, China Life Insurance Co, Fubon Financial Holding, Cathay Financial Holding and E.Sun Financial Holding are the only five financial companies out of a total of 43 companies that made the top 5% this year, with King’s Town and Cathay Financial being new entries. The 43 companies are listed on the Taiwan Stock Exchange and the Taipei Exchange.