Succession Planning for Board Members and Operational Status
The Directors of Board are elected via the Shareholders’ Meeting in accordance with candidate nomination system adopted in the Company’s “Articles of Incorporation”. In the “Corporate Governance Best Practice Principles” and “Regulations for Electing Directors” stipulated that the composition of the Board of Directors should be diversified, also considering the Company’s operations, future development needs, professional capabilities.
The Company conducts succession planning for its Board of Directors and maintains a database of director candidates based on the following criteria:
- Integrity, responsibility, and experience in the industry related to the Company's business.
- Professional knowledge and skills that are consistent with the Company's core values and contribute to the management of the Company.
- The overall Board expertise should include operational judgment, accounting and financial analysis, business management, crisis management, industry knowledge, international market view, leadership, and decision-making ability.
- The selection process of the list of director candidates shall comply with the qualification examination and relevant regulations to ensure the effective identification and selection of suitable successor director when vacancies arise or when an increase in the number of directors is planned.
- To recognize the effectiveness of the Board's operations and to assess the performance of the directors by means of performance evaluation measures, which will be used as a reference for the future renewal of directors.
In line with our established Board succession plan, the Company continues to operate a robust Director nomination and development mechanism, supported by institutionalized processes that strengthen the overall governance function of the Board. To foster talent development, we regularly arrange professional training for Directors on corporate governance, sustainability issues, and financial management (Details of Directors’ training can be found in the Company’s annual report or on the Market Observation Post System (MOPS)). These programs aim to enhance the expertise required for directors to fulfill their duties effectively.
Additionally, pursuant to the "Rules for Performance Evaluation of Board of Directors" the Board and its functional committees conduct annual self-assessments, and an independent external evaluation is carried out every three years. (Evaluation results are disclosed in the Company’s Annual Report and on the corporate governance section of our website.) These evaluations use multiple indicators to review the effectiveness of the Board’s operations and serve as a reference for future director reappointments and succession planning, ensuring that the Board’s composition continues to align with the Company’s long-term development needs.
