Succession Planning and Implementation of Members of the Board of Directors

(1) Selection of Directors

The Company has established a comprehensive system for the selection of directors with consideration to the configuration and diversity standards of the Board. The appointment procedures for the entirety of directors, in addition to being based in fairness, transparency, and equality, must also comply with the Company's Articles of Incorporation, Rules Governing the Election of the Directors, and Corporate Governance Best Practice Principles. The Company will select board members based on professional and industrial background, field of expertise, and practical experience to ensure that their knowledge, skill, and competence are adequate for executing the duties of a director. 

(2) Succession Planning and Implementation

The succession planning of the Company's directors must comply with laws and regulations in addition to the Company’s development and its mid- to long-term strategic goals. Candidates will be recruited based on the standards of professional knowledge, expertise, experience, gender, and diverse backgrounds, as well as their independence, as required for the Board of Directors. In addition to possessing diverse professional knowledge, expertise (such as law, accounting, industry, finance, marketing, or technology), and industry experience, succession candidates must possess abilities such as operational judgment, ability for actuarial and financial analysis, executive management (including the operations and management of subsidiaries), crisis management, industry knowledge, global market perspective, leadership, and decision-making. Candidates must have the ability to comprehensively achieve the Board of Directors' decision-making and supervisory functions, thereby achieving the Company's operational goals and stable mid- to long-term growth strategy in addition to improving corporate governance as well as knowledge and ability in risk management. Create yearly study plans or enroll in courses based on the characteristics of the company's business activities and the education and experience of respective directors.

Performance evaluations will be conducted annually for directors of the Company; senior managerial officers will also be evaluated on performance targets that may be used as reference in the future selection of successors to the Board of Directors.

Each quarter, Directors attend a 2-day operational strategy management meeting in which key operational teams present reports(Including promoting sustainability, business strategy, and risk management). Directors provide suggestions and participate in strategic planning during the meeting to improve senior managerial staff’s ability to formulate company policy and respond to risk management. Training and development of internal senior managerial staff may be used to prepare for the succession of future Directors.

The company has initiated the succession plan for the chairman of the board many years ago, and cultivated the senior managers of the company to arrange to enter the board of directors and familiarize them with the operation of the board of directors, and fully participate in the daily operation and management of the entire company. It was unanimously approved by the directors of the board of directors on July 30, 2020 to elect Mr. Tom Soong as the new chairman. Mr. Raymond Soong, the former chairman, continue to serve as a natural person director of the company.


Board members' backgrounds, education, concurrent roles at other companies etc and functioning of the board of directors as well as various functional committees have already been disclosed in the company's annual report. In response to the world's rising awareness towards corporate governance and CSR issues, the company has taken the approach to encourage directors' ongoing education. Details regarding directors' ongoing education have been published onto the Market Observation Post System and the Investors Section of our website, where annual reports are also available.