SFIPC Report on the Exercise of Shareholder Rights
The Securities and Futures Investors Protection Center (SFIPC) is committed to practicing shareholder activism and continues to focus its attention on issues related to the interests of shareholders of TWSE and TPEx listed and Emerging Stock companies. In its capacity as a shareholder, the SFIPC makes timely requests of companies to provide clarifications, make improvements, or take suggested measures. In Q1 of 2022, the SFIPC reviewed 88 companies' proposals for private placements of securities and 11 companies' proposals for capital reductions. In addition, as empowered under Article 10-1 of the Securities Investor and Futures Trader Protection Act, the SFIPC brought one derivative lawsuit and two discharge lawsuits against company directors and supervisors in cases where they had committed acts in the performance of their duties that materially harmed the company or violated laws or regulations or the Articles of Incorporation.
In tandem with an amendment to Article 172-2 of the Company Act, the Financial Supervisory Commission on 4 March 2022 issued amendments to relevant secondary legislation including the Regulations Governing the Administration of Shareholder Services of Public Companies and Articles 3 and 6 of the Regulations Governing Content and Compliance Requirements for Shareholders' Meeting Agenda Handbooks of Public Companies. These amendments allow TWSE and TPEx listed companies, Emerging Stock companies, and public companies meeting certain conditions to hold video-assisted hybrid shareholder meetings and virtual-only shareholder meetings, to provide more diverse methods for investors to take part in the meetings. So, in addition to the options of attending physical shareholder meetings and voting through the e-voting platform, shareholders will increasingly also have the option of taking part online over a video conferencing platform. This video platform will include functions enabling shareholders to raise questions in writing, vote, and bring extemporary motions or motions for amendments to the content of the original proposals. At present, a number of companies have already announced that they will adopt video-assisted hybrid meetings for their 2022 annual general meetings of shareholders. As we now enter the peak shareholders' meeting season in Q2 of 2022, the SFIPC advises all investors to find out in advance how the shareholders' meetings of companies in which you are invested will be held and choose a method that suits you to actively participate, so as to keep abreast of the operations of your portfolio companies and protect your rights and interests.
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