Succession plan for board members and the major management

The Company’s directors are elected using the nomination system provided in the Articles of Incorporation, which states that the composition of the board of directors shall be determined by taking diversity into consideration in the “Regulations Governing the Election of Directors. ” An appropriate policy on diversity based on the Company’s business operations, operating dynamics, and development is formulated and include, without being limited to two general standards – basic requirements and values, and professional knowledge and skills.
The composition of the Company’s board of directors shall be determined based on the Company’s business scale, shareholder structure, and practical business operations.
The Company continues to carry of the Director Succession Plan and builds up a director candidate database using the following standards:
(1) Candidates who are ethical, responsible, innovative and decisive, and who align with the Company’s core values and own professional knowledge and skills to support the Company’s administration.
(2) Candidates who have related experience in the industry of the Company.
(3) With the candidate’s participation in the board, the board will become effective, synergistic and diverse meeting the Company’s needs.
(4) The board will possess knowledge in corporate strategy and management, law, accounting, industry, finance, marketing, technology, professional skills, and industry experience.
(5) All nominated director candidates shall meet the qualifications and related regulations to ensure when there is any vacant seat or planned addition, the Company can effectively identify and elect the best fit.
At the same time, the Company also adopted the “Regulations for Evaluating Performance of the Board of Directors.” Through measures in the performance evaluation, including control over the Company’s goals and mission, recognition of responsibilities, participation in operations, internal relation management and communication, professional competency and learning, internal control and specific opinions, the Company can ensure effective operation of the board and assess the board’s performance as a reference for future elections.

Succession plan for the major management and operation thereof:

The Company’s President and senior executives form the major management, responsible for business management within the organization with deputies in each level. The major management shall have values and business philosophy aligning with the Company’s corporate management philosophy, that is, “becoming a charitable corporate and assuming social responsibilities,” in addition to professional skills and experience.
On top of the professional skill training mechanism that trains the major management and their deputies, they are also required to participate in important routine management meetings while being provided with on-the-job project management training for practical experience and arranged to participate in board meetings to become familiar with board operations. They are also prepared to increasingly participate in the day-to-day operation of each operating unit in order to strengthen the depth and width of their understanding of the Company’s business. The Company also organizes practical knowledge exchange sessions relating to management from time to time and encourages continuing learning about business related skills and corporate governance skills.
The Company conducts employee performance appraisals every year. Through the daily observation and performance assessment, it is able to learn employees’ weaknesses, development needs, and the Company’s expectations, while the appraisal result will be used as a reference for the succession plan.