We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
Corporate governance of publicly held companies
from A - Australia and Asia
Published online by Cambridge University Press: 05 July 2013
General information on corporate governance
Definition of corporate governance
Corporate governance could be defined as how a company is structured to improve its strategic management and supervisory systems. In practical terms, the systems are designed and executed in a manner that protects investors' benefits and other stakeholder interests. The goal of corporate governance is to create an optimal structure that lawfully maximizes the company's value. Corporate governance is achieved through the company's management and supervision mechanisms.
Legal basis of corporate governance
The legal basis of corporate governance in Taiwan is primarily found in the Company Act, the Securities and Exchange Act, and their related rules and regulations. The Company Act has rules to protect present and future shareholders and creditors. The Securities and Exchange Act enhances the disclosure and transparency obligations of listed companies. The Corporate Governance Best-Practice Principles for TSEC/GTSM Listed Companies includes many standards for listed companies, but compliance is not mandatory.
Capital market acts
Taiwan’s government and corporate managers regard hostile takeovers as detrimental to corporate governance.
The Securities and Exchange Act regulates the duty of disclosure, the duty of compensation (for example, for making changes to the conditions of takeover without authorization, obtaining the target’s share in other situations, making fraudulent statements in the tender offer prospectus), and the requirements for suspending a public tender offer.
To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.
