Good corporate governance aims to enhance enterprise efficiency, competitiveness, and shareholder rights.
In 1998, Taiwan experienced a series of corporate fraud and embezzlement cases, which subsequently exposed severe non-performing loan issues among financial institutions, precipitating a financial crisis. The affected enterprises often suffered from poor corporate governance, characterized by the use of short-term funds for long-term investments, over-expansion, and even asset stripping, highlighting numerous issues in our country's corporate governance.
In response, the Financial Supervisory Commission began in 1998 to promote the importance of corporate governance to publicly traded companies and has since implemented a range of governance mechanisms. In 2020, the 'Corporate Governance 3.0 - Sustainable Development Blueprint' was released to further these efforts. Corporate Governance Enhancement StrategiesCorporate governance facilitates the transformation of a company's management structure and provides effective oversight mechanisms. To guide businesses in strengthening their corporate governance, the Taiwan Investor Relations Institute (TIRI) conducts comprehensive assessments through governance evaluations, enabling companies to identify clear directions for improvement.
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