30 Mar 2018 Taiwan weekly legal update: Corporate Governance; EU safeguard measures investigation
FSC: Master Layout Plan for Corporate Governance 2018~2020.
The Financial Supervisory Commission (FSC) released its new MLP for Corporate Governance 2018~2020. The FSC said that the commission will devote itself to promote these projects within the next three years. The followings are the projects in this MLP 2018~2020:
- Emphasizing Corporate Social Responsibilities in corporate governance: The goal is to put corporate social responsibilities into its internal governance. The FSC will evaluate corporations through on-site inspection and fill the question list to credit their governance performance.
- Optimizing the efficiency of the Board: The efficiency of the Board would largely effect on the corporate’s performance. The FSC is planning to adopt the system of “Governance Agency”. The efficiency of the Board could be improved with the assistance of Governance Agencies. The financial industries and listed corporate with annual paid-in capital over 10 billion NT dollar will be the first to adopt this agency system, and other listed corporates would be asked to establish Audit Committee and Independent Director system.
- Shareholder Activism: The FSC appealed that in the light of recent E-Voting policy, the listed corporates shall adopt the candidates’ nomination system in the election of the Directors. And the FSC encourages financial industries to sign “The Code of Stewardship” and attend the shareholders’ meeting. The goal is to have over 50% of the listed corporates to sign the C And reach up to 70% of financial investor attendance to the shareholders’ meeting.
- Information Transparency: The English information of listed corporates is yet to improve. The FSC would push the listed corporates with over 30% of foreign investment or capital over 10 billion NT dollar to provide its financial statement in the English Furthermore, the CSR report should render pursuant to the format of GRI Standards and corporate should release more than its financial information.
- Legal Compliance: The FSC will launch the reforms of “Security Transaction Act”. For those who violate the code of conduct of auditing/remuneration committee, the violators will subject to fines under Security Transaction Act.
EU initiated safeguard measures investigation into certain steel products.
The EU Commission has initiated a safeguard investigation on imports of a number of steel products into the EU. The Commission describes that from 2013 to 2017, the 26 steel products imported into EU has increased 65% (from 17.80 million to 29.30 million tons). This phenomenon showed a trend of global overcapacity in steel products. The Commission has controlled certain evidence that could prove the overcapacity of import steel could do harms to the EU industries. The statistic shows that the import products are reducing the market share of EU’s steel products and the prices of import goods are lower than the like products in EU. In the light of the third countries are asking for trade remedies and the US has initiated section 232 of the Trade Expansion Act, the EU Commission would also initiate an investigation on whether the US is causing trade diversion.
A safeguard investigation must normally be completed in 9 months but, in exceptional circumstances, may be extended to 11 months. Safeguard measures can take various forms, e.g. increased customs duties or quotas (including tariff quotas). Quotas are normally set at least as high as the average level of imports over the last 3 representative years.
According to the EU statistic, the major import countries of steel products are India, China, and Turkey. Steel products from Taiwan cover 5.47% of total import, rank 7. Most products are the stainless steel and clad steel.
The attendance records could take a variety of forms.
The Ministry of Labor clarified the doubts among the public that whether attendance records could have different forms. It is a misunderstanding that the law would only accept traditional “clock in” or “sign in” as records. But attendance records could have a variety of forms as long as this form is accepted by both employers and employees.
The Ministry described that the attendance records are the important dossier for wages and working hours. The records are also a focusing checkpoint during labor inspection. However, the form of attendance records are not limited to the tradition “clock in”, but companies could apply any forms to keep the records where they see fit. For example, the computer logs in/out, GPS records(transportation industry), online clock in, or other kinds of App that could keep the records are applicable under the Labor Standards Act.
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