Corporate Governance Best-Practice Principles for Securities Firms ( Amended 2004 . 08 . 06)
證券商公司治理實務守則(民國93年08月06日修正)

Chapter I General Provisions
第一章總則

Article 1 In order to assist securities firms to establish a sound corporate governance system, and to promote the integrity of the securities market, the Taiwan Stock Exchange ("TSE"), the GreTai Securities Market ("GTSM") and the Chinese Securities Association ("CSA") hereby jointly adopt the Principles to be followed by securities firms.
第1條 為協助證券商建立良好之公司治理制度，並促進證券市場健全發展，臺灣證券交易所股份有限公司(以下簡稱證券交易所)、財團法人中華民國證券櫃檯買賣中心(以下簡稱櫃檯買賣中心)及中華民國證券商業同業公會(以下簡稱證券商公會)爰共同制定本守則，以資遵循。

A TSE/GTSM listed securities firm shall, unless otherwise provided for in the Principles, be required to comply with the Corporate Governance Best-Practice Principles For TSE/GTSM Listed Companies.
上市上櫃證券商除本守則另有規定外，應依上市上櫃公司治理實務守則規定辦理。

A foreign securities firm having Taiwan branches may be waived the application of the Principles´ regulations from Chapter I to Chapter IV.
外國證券商在台分公司免適用本守則第一章至第四章之規定。

A company concurrently operating as securities firm may be waived the application of the Principles´ regulations.
兼營證券商免適用本守則之規定。

Securities firms are advised to promulgate their own corporate governance principles in accordance with the Principles.
證券商宜參照本守則相關規定訂定公司本身之公司治理守則。

Article 2 When setting up the corporate governance system, in addition to complying with laws, regulations, and articles of incorporation, a securities firm shall also follow the following principles:
第2條 證券商建立公司治理制度，除應遵守法令及章程之規定外，應依下列原則為之：

1. protect shareholders´ rights and interests;
一、保障股東權益。

2. strengthen the powers of the board of directors;
二、強化董事會職能。

3. fulfill the function of supervisors;
三、發揮監察人功能。

4. respect investors´ and stakeholders´ rights and interests; and
四、尊重投資人及利害關係人權益。

5. enhance information transparency.
五、提昇資訊透明度。

Article 3 A securities firm shall follow the Criteria Governing the Establishment of Internal Control System in Securities and Futures Service Enterprises and the standard guidelines for the internal control system of securities firms as jointly promulgated by TSE and such other securities related institutions and take into consideration the overall operational activities of itself and its subsidiaries in establishing an effective internal control system, and review it at all times, in order to keep up with the dynamics of environment inside and outside the company and ensure that the design and enforcement of the system remain effective.
第3條 證券商應依證券暨期貨市場各服務事業建立內部控制制度處理準則及臺灣證券交易所股份有限公司等證券相關機構共同訂定之證券商內部控制制度標準規範之規定，考量本公司及子公司整體之營運活動，建立有效之內部控制制度，並應隨時檢討，以因應公司內外在環境之變遷，俾確保該制度之設計及執行持續有效。

In addition to faithfully performing voluntary reviews of the internal control system, the board of directors and the management shall review the result of the voluntary reviews of each department and the report of the internal audit department at least annually. Supervisors shall also pay attention to and exercise oversight on this matter.
證券商除應確實辦理內部控制制度之自行檢查作業外，董事會及管理階層應至少每年檢討各部門自行檢查結果及稽核單位之稽核報告，監察人並應關注及監督之。

The management of a securities firm shall pay special attention to the internal audit department and its personnel, fully empower them and urge them to conduct audits effectively, evaluate problems of the internal audit system and evaluate the efficiency of operations to ensure that such a system can be carried out effectively on a continuous basis and can assist the board of directors and the management to perform their duties effectively so as to ensure a sound corporate governance system.
證券商管理階層應重視內部稽核單位與人員，賦予充分權限，促其確實檢查、評估內部控制制度之缺失及衡量營運之效率，以確保該制度得以持續有效實施，並協助董事會及管理階層確實履行其責任，進而落實公司治理制度。

Chapter II Protection of Shareholders´ Rights and Interests
第二章保障股東權益

Subchapter 1 Encouraging Shareholders to Participate in Corporate Governance
第一節鼓勵股東參與公司治理

Article 4 When implementing the corporate governance system, the ultimate goals of a securities firm shall be to protect shareholders´ rights and interests and treat all shareholders fairly.
第4條 證券商執行公司治理制度應以保障股東權益為最大目標，並公平對待所有股東。

A securities firm shall establish a corporate governance system which ensures shareholders´ right of being fully informed of, participating in and making decisions over important matters of the company.
證券商應建立能確保股東對公司重大事項享有充分知悉、參與及決定等權利之公司治理制度。

Resolutions adopted by shareholders´ meetings of securities firms shall comply with laws, regulations and articles of incorporation.
證券商之股東會決議內容應符合法令及公司章程規定。

Article 6 The board of directors of a securities firm shall properly arrange the proposals and agenda of shareholders´ meetings. Shareholders shall be granted reasonable time to deliberate each proposal and afforded an appropriate opportunity to make statements.
第6條 證券商董事會應妥善安排股東會議題及程序，股東會應就各議題之進行酌予合理之討論時間，並給予股東適當之發言機會。

It would be advisable for a majority of the directors to attend in person the shareholders´ meetings that are convened by the board of directors.
董事會所召集之股東會，宜有董事會過半數董事親自出席。

Article 7 A securities firm shall encourage its shareholders to actively participate in its corporate governance and hold shareholders´ meetings on the premise of legal, effective and safe proceedings.
第7條 證券商應鼓勵股東參與公司治理，並使股東會在合法、有效、安全之前提下召開。

A securities firm shall seek all ways and means, including fully exploiting technologies for information disclosure, so as to enhance the attendance rate of shareholders at the shareholders´ meeting and ensure the exercise of shareholders´ rights by shareholders at the shareholders´ meeting in accordance with laws.
證券商應透過各種方式及途徑，並充分採用科技化之訊息揭露方式，藉以提高股東出席股東會之比率，暨確保股東依法得於股東會行使其股東權。

Article 8 A securities firm shall record the minutes of the shareholders´ meeting in accordance with the Company Law and other applicable laws and regulations.
第8條 證券商應依照公司法及相關法令規定記載股東會議事錄，

With respect to unanimous by adopted proposal, the meeting minutes shall state: "The resolution is unanimously adopted by all shareholders attending the shareholders´ meeting after the chairman inquires all attending shareholders´ opinion."
股東對議案無異議部分，應記載「經主席徵詢全體出席股東無異議照案通過」；

As to any proposal that has received any dissent and been adopted in the shareholders´ meeting, the meeting minutes shall record the method and result of the voting.
股東對議案有異議並付諸表決者，應載明表決方式及表決結果。

With respect to the election of directors and supervisors, the meeting minutes shall record the method of voting adopted therefore and the total number of votes for the directors or supervisors who were elected.
董事、監察人之選舉，應載明採票決方式及當選董事、監察人之當選權數。

The minutes of the shareholders´ meeting shall be properly and perpetually kept by the company during its legal existence. It would be advisable for a securities firm to fully disclose such meeting minutes on its website, if any.
股東會議事錄在公司存續期間應永久妥善保存，公司設有網站者宜充分揭露。

Article 9 The chairman of the shareholders´ meetings shall be fully familiarized and comply with the rules governing the proceedings of the shareholders´ meetings established by the company. The chairman shall ensure the proper progress of the proceedings of the meetings and may not adjourn the meetings at will.
第9條 股東會主席應充分知悉及遵守公司所訂議事規則，並維持議程順暢，不得恣意宣布散會。

In order to protect the interests of shareholders owning a significant portion of shares, if the chairman declares the adjournment of the meeting in a manner in violation of rules governing the proceedings of the shareholders´ meetings, it would be advisable for the members of the board of directors other than the chairman of the shareholders´ meeting to promptly assist the attending shareholders at the shareholders´ meeting in electing a new chairman of the shareholders´ meeting to continue the proceedings of the meeting, by a resolution to be adopted by a majority of the votes represented by the shareholders attending the said meeting in accordance with the legal procedures.
為保障多數股東權益，遇有主席違反議事規則宣布散會之情事者，董事會其他成員宜迅速協助出席股東依法定程序，以出席股東表決權過半數之同意推選一人為主席，繼續開會。

Article 10 A securities firm shall respect the shareholders´ right to know. With respect to the information of the financial conditions, operations, the insiders´ shareholdings, and corporate governance status in the company, a securities firm shall faithfully comply with the applicable regulations regarding the information disclosure.
第10條 證券商應重視股東知的權利，有關公司財務、業務、內部人持股及公司治理情形，應確實遵守資訊公開之相關規定。

Article 11 The shareholders shall be entitled to profit distributions by the company.
第11條 股東應有分享公司盈餘之權利。

In order to ensure the shareholders´ investment interests, the shareholders´ meeting may according to Article 184 of the Company Law, examine the statements and books prepared and submitted by the board of directors and the audit reports submitted by the supervisors, and may decide, by resolution, profit distributions and deficit off-setting plans.
為確保股東之投資權益，股東會得依公司法第一百八十四條之規定查核董事會造具之表冊、監察人之報告，並決議盈餘分派或虧損撥補。

In order to proceed with the above examination, the shareholders´ meeting may appoint an inspector.
股東會執行前揭查核時，得選任檢查人為之。

The shareholders may, according to Article 245 of the Company Law, apply with the court to select an inspector in examining the accounting records and assets of the company.
股東得依公司法第二百四十五條之規定聲請法院選派檢查人，檢查公司業務帳目及財產情形。

The board of directors, supervisors and managers of a securities firm shall fully cooperate in the examination conducted by the inspectors in the aforesaid two paragraphs without any obstruction, rejection or circumvention.
證券商之董事會、監察人及經理人對於前二項檢查人之查核作業應充分配合，不得有妨礙、拒絕或規避行為。

Article 12 In entering into material financial and business transactions such as acquisition or disposal of assets, engaging in derivatives products transactions, lending funds of the company to any other person, making endorsements or providing guarantees to any other person, a securities firm shall proceed in accordance with the applicable laws and/or regulations.
第12條 證券商取得或處分資產、從事衍生性金融商品交易、資金貸與他人、為他人背書或提供保證等重大財務業務行為，

A securities firm shall further establish the operating procedures in relation to these material financial and business transactions and report the same to the shareholders´ meeting for its approval so as to protect the interests of the shareholders.
應依相關法令規定辦理，並訂定相關作業程序，提報股東會通過，以維護股東權益。

Article 13 In order to protect the interests of the shareholders, it would be advisable for a securities firm to designate responsible personnel dedicated to handling shareholders´ proposals, inquiries or disputes.
第13條 為確保股東權益，證券商宜有專責人員處理股東建議、疑義及糾紛事項。

A securities firm shall properly deal with matters arising from any action instituted by shareholders pursuant to the applicable laws claiming damage to such shareholders´ interests caused by the resolution adopted in its shareholders´ meetings or the board of directors meetings in violation of the applicable laws, regulations or the company´s articles of incorporation, or claiming breach by the company´s directors, supervisors or managers of applicable laws, regulations or the company´s articles of incorporation in performing their duty.
證券商之股東會、董事會決議違反法令或公司章程，或其董事、監察人、經理人執行職務時違反法令或公司章程之規定，致股東權益受損者，公司對於股東依法提起訴訟情事，應妥適處理。

Subchapter 2 Corporate Governance Relationships Between the Company and Its Affiliated Ente
第二節公司與關係企業間之公司治理關係

Article 14 A securities firm shall clearly identify the allocation of its management authorities and responsibilities over personnel, assets and financial matters of its affiliated enterprises, and shall conduct risk evaluation and establish appropriate firewalls.
第14條 證券商與關係企業間之人員、資產及財務之管理權責應予明確化，並確實辦理風險評估及建立適當之防火牆。

Article 15 Unless otherwise provided by the laws and regulations, a manager of a securities firm may not serve as a manager of its affiliated enterprises.
第15條 證券商之經理人除法令另有規定外，不應與關係企業之經理人互為兼任。

A director, who engages in any transaction for himself or on behalf of another person that is within the scope of the company´s business, shall disclose to the shareholders´ meeting the material terms of such transaction and obtain its consent.
董事為自己或他人為屬於公司營業範圍內之行為，應對股東會說明其行為之重要內容，並取得其許可。

Article 16 A securities firm shall establish a sound management system for finance, operations and accounting in accordance with the applicable laws and regulations. It shall further, together with its affiliated enterprises, properly conduct an overall risk evaluation of the major banks they are dealing with, their customers and their suppliers, and carry out the necessary control mechanism to reduce credit risks.
第16條 證券商應按照相關法令規範建立健全之財務、業務及會計管理制度，並應與其關係企業就主要往來銀行、客戶及供應商妥適辦理綜合之風險評估，實施必要之控管機制，以降低信用風險。

Article 17 Where a securities firm and its affiliated enterprises enter into inter-company business transactions, a written agreement governing respect of the relevant financial and business operations between each other shall be made in accordance with the principle of fair dealing and reasonableness. Both parties shall definitively stipulate the terms and conditions of the price and payment terms mechanism, and desist from any transactions that are other than at arms´ length.
第17條 證券商與其關係企業間有業務往來者，應本於公平合理之原則，就相互間之財務業務相關作業訂定書面規範。對於簽約事項應明確訂定價格條件與支付方式，並杜絕非常規交易情事。

All transactions or contracts made by and between a securities firm and its affiliated persons and shareholders shall follow the principles set froth in the proceeding sub-paragraph and tunneling of profits in strictly prohibited.
證券商與關係人及其股東間之交易或簽約事項亦應依照前項原則辦理，並嚴禁利益輸送情事。

Article 18 A corporate shareholder having controlling power over a securities firm shall comply with the following provisions:
第18條 對證券商具控制能力之法人股東，應遵守下列事項：

1. it shall bear a duty of good faith to other shareholders and shall not directly or indirectly cause the company to engage in transactions at other than arms´ length or involve in management conduct for illegal profit.
一、對其他股東應負有誠信義務，不得直接或間接使公司為不合營業常規或其他不法利益之經營。

2. its representative shall follow the rules implemented by the securities firm with respect to the exercise of rights and participation of resolution, so that at a shareholders´ meeting, the representative shall exercise his/her voting right for the best interest of all shareholders and in good faith and, when acting as a director or supervisor, he/she will exercise the fiduciary duty of a director or supervisor.
二、其代表人應遵循證券商所訂定行使權利及參與議決之相關規範，於參加股東會時，本於誠信原則及所有股東最大利益，行使其投票權，或於擔任董事、監察人時，並能踐行董事、監察人之忠實與注意義務。

3. it shall comply with relevant laws, regulations and the articles of incorporation of the company in nominating directors or supervisors and shall not act beyond the authority granted by the shareholders meeting or board meeting.
三、對公司董事及監察人之提名，應遵循相關法令及公司章程規定辦理，不得逾越股東會、董事會之職權範圍。

4. it shall not improperly intervene in corporate policy making or obstruct corporate management activities.
四、不得不當干預公司決策或妨礙經營活動。

5. it shall not restrict or impede the management of the company by methods of unfair competition.
五、不得以不公平競爭之方式限制或妨礙公司之經營。

Article 19 A securities firm shall ensure the command at any time of information of the identity of major shareholders or its ultimate control persons who own a higher percentage of shares and have actual control over the company.
第19條 證券商應隨時掌握持有股份比例較大以及可以實際控制公司之主要股東及主要股東之最終控制者名單。

A securities firm shall disclose from time to time important information about its major shareholders relating to the pledge, increase or decrease of shares, or other matters that may possibly trigger a change in the ownership of their shares.
證券商應定期揭露董事有關質押、增加或減少公司股份，或發生其他可能引起股份變動之重要事項，俾其他股東進行監督。

The major shareholder indicated in the first paragraph refers to the one who owns five percent or more of the outstanding shares of the company or the shareholding stake thereof is on the top ten list, provided however that the company may set up a lower shareholding threshold according to the actual shareholding stake that may control the company.
第一項所稱主要股東，係指股權比例達百分之五以上或股權比例占前十名之股東，但公司得依其實際控制公司之持股情形，訂定較低之股份比例。

Chapter III Enhancing the Function of Board of Director
第三章強化董事會職能

Subchapter 1 Structure of Board of Directors
第一節董事會結構

Article 20 The board of directors of a securities firm shall be responsible to the shareholders´ meetings. Procedures and arrangement relating to corporate governance shall ensure that, in exercising its authority, the board of directors will comply with laws, regulations, articles of incorporation, and the resolutions of shareholders´ meetings of the company.
第20條 證券商之董事會應向股東會負責，其公司治理制度之各項作業與安排，應確保董事會依照法令、公司章程之規定或股東會決議行使職權。

Regarding the structure of the board of directors of a securities firm, the number of the board members shall be properly determined by reviewing to the scale of corporate management and operation and the shareholding of the major shareholders and taking into consideration of the practical needs for operation.
證券商之董事會結構，應就公司經營發展規模及其主要股東持股情形，衡酌實務運作需要，決定適當董事席次。

While installing independent directors, it shall take into account the reasonable professional composition of the directors and the objective requirements for them to perform the duty independently.
設立獨立董事，應審慎考慮合理之專業組合及其獨立行使職權之客觀條件。

The board members shall have the necessary knowledge, skill, and experience for performing their duties. To achieve the ideal goal of corporate governance, the board of directors shall have the following abilities:
董事會成員應普遍具備執行職務所必須之知識、技能及素養。為達到公司治理之理想目標，董事會整體應具備之能力如下：

1. ability to make operational judgment;
一、營運判斷能力。

2. ability to perform accounting and financial analysis;
二、會計及財務分析能力。

3. ability to conduct management administration;
三、經營管理能力。

4. ability to conduct crisis management;
四、危機處理能力。

5. possession of securities and financial derivatives products professional knowledge;
五、證券及衍生性金融商品專業知識。

6. possession of perspective of international market;
六、國際市場觀。

7. ability to lead; and
七、領導能力。

8. ability to make decisions.
八、決策能力。

Article 21 In order to achieve the goal of corporate governance, the major duties of the board of directors of a securities firm are as follows:
第21條 為達成公司治理之目標，證券商董事會之主要任務如下：

1. stipulation of an effective and appropriate internal control system;
一、訂定有效及適當之內部控制制度。

2. selection and supervision of managers;
二、選擇及監督經理人。

3. review of the management policy and business plan of the company;
三、審閱公司之管理決策及營運計畫。

4. review of the financial goals of the company;
四、審閱公司之財務目標。

5. supervision of the result of operations of the company;
五、監督公司之營運結果。

6. supervision and handling of the risks encountered by the company;
六、監督及處理公司所面臨之風險。

7. ensuring the compliance with relevant laws and regulations by the company;
七、確保公司遵循相關法規。

8. planning the future development of the company;
八、規劃公司未來發展方向。

9. creation and maintenance of the company image and fulfillment of social obligations;
九、建立與維持公司形象及善盡社會責任。

10. appointment of CPA or attorneys; and
十、選任會計師或律師等專家。

11. protect the rights of investors.
十一、維護投資人之權益。

Article 22 A securities firm shall incorporate a fair, just, and open procedure for the election of directors and adopt the cumulative voting mechanism in order to fully reflect shareholders´ views, unless a different mechanism has otherwise been implemented in the articles of incorporation.
第22條 證券商應制定公平、公正、公開之董事選任程序，除章程另有規定外，應採用累積投票制度以充分反應股東意見。

Where the board of directors resolves to set up independent director positions, the requirements and standards for such independent directors shall comply with the second paragraph of Article 25.
其中經股東會決議得設置獨立董事者，其資格條件、認定標準等事項，依第二十五條第二項規定辦理之。

The aggregate shareholding percentage of all of the directors of a securities firm shall comply with the laws and regulations. Restrictions on the share transfer of each director and the creation, release, or changes of any pledges over the shares held by each director shall be subject to the relevant laws and regulations, and the relevant information shall be fully disclosed.
證券商董事會之全體董事合計持股比例應符合法令規定，各董事股份轉讓之限制、質權之設定或解除及變動情形均應依相關規定辦理，各項資訊並應充分揭露。

Article 23 Before a securities firm convenes the shareholders´ meeting to re-elect the directors, it would be advisable that the qualifications, education and work, background and the existence of any other matters set forth in Article 30 of the Company Law and Article 53 of the Securities and Exchange Law with respect to the candidates recommended by shareholders or directors be reviewed in advance and the review result thereof be provided to shareholders for their reference, so that qualified directors will be elected.
第23條 證券商在召開股東會進行董事改選之前，宜就股東或董事推薦之董事候選人之資格條件、學經歷背景及有無公司法第三十條及證券交易法第五十三條所列各款情事等事項，進行事先審查，並將審查結果提供股東參考，俾選出適任之董事。

Article 24 Clear distinctions shall be drawn between the responsibilities and duties of the chairman of the board of a securities firm and those of its general manager.
第24條 證券商董事長及總經理之職責應明確劃分。

It would be inappropriate for the chairman to also act as the general manager. If the chairman also acts as the general manager or they are spouses or relatives within one degree of consanguinity, it would be advisable that the number of independent directors be increased.
董事長及總經理不宜由同一人擔任。如董事長及總經理由同一人或互為配偶或一等親屬擔任，則宜增加獨立董事席次。

Subchapter 2 Independent Directors
第二節獨立董事制度

Article 25 Independent directors of a securities firm, if any, shall be elected by the shareholders´ meeting in accordance with Article 23 and in case of any shortfall, an election of additional independent directors shall be timely arranged.
第25條 證券商設有獨立董事者，經依第二十三條規定辦理後，由股東會選舉產生，獨立董事席次如有不足時，應適時辦理增補選事宜。

The independent directors shall be those natural persons having professionalism and knowledge of securities or derivatives and good characters who are not the representatives stipulated in Article 27 of the Company Law and without any of the following instances within the latest one year:
獨立董事應為具備證券或衍生性金融商品專業知識，品德良好且非屬公司法第二十七條所定代表人之自然人，最近一年內並不得有下列各款規定情事之一：

1. being an employee of a securities firm or director, supervisor, or employee of its affiliate; however, in the case where a financial holding company and its subsidiary that is a securities firm are deemed as the "parent and subsidiary" as provided in the Statements of Financial Accounting Standards and the independent directors or independent supervisors of the subsidiary are the independent directors or independent supervisors of the financial holding company, this restriction is not applicable;
一、證券商之受僱人或其關係企業之董事、監察人或受僱人。但金融控股公司及其證券子公司具財務會計準則公報所稱母子關係，該證券子公司之獨立董事、獨立監察人由其金融控股公司之獨立董事、獨立監察人兼任者，不在此限。

2. being a natural person who holds directly or indirectly at least 1% of the total outstanding and issued shares of a securities firm or is one of its top ten shareholders;
二、直接或間接持有證券商已發行股份總額百分之一以上或持股前十名之自然人股東。

3. being the spouse or relatives within one degree of consanguinity of the persons described in the preceding two items;
三、前二款所列人員之配偶及二親等以內直系親屬。

4. being a director, supervisor, or employee of a corporate shareholder who holds at least 5% of the total outstanding and issued shares of a securities firm or is one of its top five shareholder;
四、直接或間接持有證券商已發行股份總額百分之五以上或持股前五名法人股東之董事、監察人、受僱人。

5. being a director, supervisor, manager, or shareholder of at least 5% of the total outstanding and issued shares of a company or entity who has financial or business transaction with a securities firm; and
五、與證券商有財務業務往來之公司或機構之董事、監察人、經理人或持股百分之五以上股東。

6. being a professional who provides a security firm or its affiliates with financial, commercial, or legal services, or the owner, partner, director (trustee), supervisor (inspector), manager of a sole proprietorship, partnership, company, institution, or organization who provides it with the same services and also their spouses.
六、為證券商或關係企業提供財務、商務、法律等服務、諮詢之專業人士、獨資、合夥、公司或機構團體之企業主、合夥人、董事(理事)、監察人(監事)、經理人及其配偶。

If a security firm has managing directors, it is advisable that there shall be one or more independent director among them.
證券商如有設置常務董事者，常務董事中宜有獨立董事至少一人擔任之。

Article 26 A securities firm shall stipulate expressly the scope of duties of the independent directors and empower them with manpower and material support related to the exercise of their power.
第26條 證券商應明定獨立董事之職責範疇及賦予行使職權之有關人力物力。

The company or other board members shall not restrict or obstruct the performance of duties by the independent directors.
公司或董事會其他成員，不得限制或妨礙獨立董事執行職務。

A securities firm shall stipulate expressly the compensation of the directors in its articles of incorporation or pursuant to a resolution of the shareholders´ meeting. Different but reasonable compensation from that of other directors may be set forth for the independent directors.
證券商應於章程或依股東會決議明訂董事之報酬，對於獨立董事得酌訂與一般董事不同之合理報酬。

Subchapter 3 Audit Committee, Risk Management Committee, and Other Functional Committees
第三節審計委員會、風險管理委員會及其他功能性委員會

Article 27 For the purpose of developing monitoring functions and strengthening management mechanisms, the board of directors of a securities firm may, taking into account the basis of the size of the board and the number of the independent directors, set up audit, risk management, nomination, compensation or any other functional committees and have them stipulated in the articles of incorporation.
第27條 證券商董事會為健全監督功能及強化管理機能，得考量董事會規模及獨立董事人數，設置審計、風險管理、提名、報酬或其他各類功能性委員會，並明定於章程。

Functional committees shall be responsible to the board and submit the proposals to the board of directors for approval.
功能性委員會應對董事會負責，並將所提議案交由董事會決議。

Functional committees shall adopt regulations governing the exercise of their power and duty to be approved by the board of directors. The regulations governing the exercise of their power shall at least comprise of the functions, responsibilities, the process for exercising the power (the status of the organization, the qualifications of the members, the resources for exercising the power and duty and the procedure for such exercise) and annual review and assessment of the necessity of renewing the policy of regulation for exercising the power and duty.
功能性委員會應訂定行使職權規章，經由董事會通過。行使職權規章之內容至少包括委員會之權限及責任，行使職權過程(組織地位、委員之資格條件、行使職權資源、行使職權流程等)，及每年覆核與評估是否更新行使職權規章之政策。

Article 28 It is advisable that a securities firm make it the first priority to set up the audit committee and the risk management committee.
第28條 證券商宜優先設置審計委員會及風險管理委員會。

The main functions and duties of the Audit Committee are as follows:
審計委員會主要職責如下：

1. examination of the accounting system, financial conditions, and the procedure for financial reports of the company;
一、檢查公司會計制度、財務狀況及財務報告程序。

2. reviewing the procedures for major financial and business transactions such as acquisition or disposition of assets, engaging in derivatives transaction, making loans to others, and endorsement or provision of guaranty for others;
二、審核取得或處分資產、從事衍生性金融商品交易、資金貸與他人及為他人背書或提供保證等重大財務業務行為之處理程序。

3. communications with the CPAs of the company;
三、與公司簽證會計師進行交流。

4. examination of the internal auditors and their performance;
四、對內部稽核人員及其工作進行考核。

5. examination of the internal control of the company;
五、對公司之內部控制進行考核。

6. assessment, inspection, and monitoring the existence and threat of risks of all kinds;
六、評估、檢查、監督公司存在或潛在之各種風險。

7. inspection of law compliance by the company;
七、檢查公司遵守法律規範之情形。

8. reviewing the transactions set forth in Article 32 of the Principles where voting shall be disqualified due to conflicts of the interest of directors, especially material related-party transactions, acquisition or disposition of assets, engaging in derivatives transactions, making loans to others, and endorsement or provision of guaranty for others;
八、審核本守則第三十三條所述涉及董事利益衝突應迴避表決權行使之交易，特別是重大關係人交易、轉投資、取得或處分資產、從事衍生性金融商品交易、資金貸與他人、為他人背書或提供保證等。

9. assessing the qualifications of CPAs and nomination of qualified candidates;
九、評核律師、會計師之資格並提名適任人選。

10. stipulation of the investor protection policy and examination of its implementation;
十、訂定保護投資人之政策並考核其執行情形。

11. proposing the remuneration of the directors, supervisors, and managers and the adjustment thereto;
十一、擬議董事、監察人及經理人之報酬與調整。

12. proposing suggestions for the application of disqualification by directors;
十二、就申請董事迴避案件提出建議方案。

13. reviewing the qualifications and performance of the general manager and other managers and proposing suggestions of appointment or discharge; and
十三、評核總經理及其他經理人之資格、績效，並提出任免建議。

14. proposing suggestions and review report with respect to the management policy and operation plan of the company.
十四、就公司之管理決策及營運計畫提出建議及審核報告。

The main functions and duties of the Risk Management Committee are as follows:
風險管理委員會主要職責如下：

1. stipulation of risk management policy and framework and designate responsibilities to the relevant corporate departments;
一、訂定風險管理政策及架構，將權責委派至相關單位。

2. stipulation of risk assessment criteria; and
二、訂定風險衡量標準。

3. setting the overall level of risk of the company and of each corporate department and managing the risk.
三、管理公司整體風險限額及各單位之風險限額。

If a securities firm has independent directors, the audit committee and the risk management committee shall both consist of one or more independent directors and be convened by the independent director. It would be advisable that independent supervisors be invited to sit in at the meeting.
證券商設有獨立董事者，審計委員會及風險管理委員會均應有獨立董事參與並擔任召集人，且宜邀請獨立監察人列席。

At least one of the independent directors of each of the committees as referred to in the preceding subparagraph shall have professional expertise in securities, derivatives, accounting or finance.
前項委員會之獨立董事，均應至少有一名具有證券及衍生性金融商品、會計或財務專業背景。

Article 29 A securities firm shall select a professional, responsible and independent CPA to be its external auditor, who shall perform regular reviews of the financial conditions and internal control measures of the company.
第29條 證券商應選擇專業、負責且具獨立性之簽證會計師，定期對公司之財務狀況及內部控制實施查核。

With regard to the irregularity or deficiency timely discovered and disclosed by the auditor during the review , and the concrete measures of improvement or prevention suggested by the auditor, the company shall faithfully implement improvement actions.
公司針對會計師於查核過程中適時發現及揭露之異常或缺失事項，及所提具體改善或防弊意見，應確實檢討改進。

A securities firm shall evaluate the independence of the auditor engaged by the company regularly and no less frequently than once annually.
證券商應定期(至少一年一次)評估聘任會計師之獨立性。

In the event that the company engages the same auditor without replacement for five years consecutively, or if the auditor is subject to disciplinary actions or other circumstances prejudicial to the independence of the auditor, the company shall review the necessity of replacing the auditor, and shall submit to the board the conclusion of such review.
公司連續五年未更換會計師或其受有處分或有損及獨立性之情事者，應考量有無更換會計師之必要，並就結果提報董事會。

Article 30 A securities firm shall engage professional and competent legal counsel to provide adequate legal consultation services to the company, or to assist in the endeavor by the directors, the supervisors and the management to improve their knowledge of the law, for the purposes of preventing any infraction by the company or its staff of laws or regulations, and ensuring the corporate governance matters will proceed pursuant to the relevant legal framework and the prescribed procedures.
第30條 證券商宜委任專業適任之律師，提供公司適當之法律諮詢服務，或協助董事會、監察人及管理階層提昇其法律素養，避免公司及相關人員觸犯法令，促使公司治理作業在相關法律架構及法定程序下運作。

In the event that the directors, supervisors or the management are involved in litigation as result of performing his or her duties as provided by the law or arising from shareholders disputes, depending on the circumstances the company shall retain legal counsel to provide assistance.
遇有董事、監察人或管理階層依法執行業務涉有訴訟或與股東之間發生糾紛情事者，公司應視狀況委請律師予以協助。

Subchapter4 Rules for the Proceedings of Board Meetings and the Decision-making Procedures
第四節董事會議事規則及決策程序

Article 31 It is advisable for a securities firm to hold a board meeting no less frequently than once every two (2) months so as to meet business needs. The board meeting may be convened at any time in the event of an emergency.
第31條 為業務需要，證券商宜至少每季召開董事會一次，遇有緊急情事時並得隨時召集之。

In terms of a regular board meeting, an agenda shall be arranged in advance, notices shall be sent to all directors and supervisors according to the time scheduled set by the laws, the supervisors shall be invited to attend the meeting, and sufficient meeting materials shall be prepared.
定期召開之董事會應事先規劃並擬訂會議議題，按規定時間通知所有董事出席，暨邀請監察人列席，並提供足夠之會議資料。

A securities firm shall adopt the rules for proceedings of board meetings and report the same to the shareholders so as to enhance the operational efficiency and decision-making capability of the board. The rules shall include: 1. the meeting notice;2. preparation of attendance sheet and other documents;3. the principle for deciding the location and time of a board meeting;4. the chairman of the meeting of the board and observers;5. the sound recording and videotaping of the proceedings of the board meeting;6. the convening of the board meeting, discussions of the proposals, directors´ statements, directors´ vote, supervision of the voting and calculation of the votes;7. any voting right calculation formula inconsistent with these Principles;8. meeting minutes, the signature thereupon and other matters;9. disqualification by directors due to conflicts of interest; and10. delegation of powers by the board of the directors.
證券商應制定董事會議事規則(含1會議通知2簽名簿等文件備置3確立董事會開會地點及時間之原則4董事會主席、列席人員5董事會開會過程錄音或錄影之存證6董事會召開、議案討論、董事發言、表決、監票及計票方式7違反本規定之表決權計算方式8會議紀錄及簽署事項9董事之利益迴避制度10董事會之授權原則等)，並提報股東會，以提昇董事會之運作效率及決策能力。

Article 33 A director shall exercise a high degree of self-discipline and shall voluntarily abstain from voting, for himself or herself or as proxy for another director, on proposal submitted to the board of directors that risks the involvement of the director´s own interest to the detriment of the interest of the company. The directors shall practice self discipline as to their internal relationship and must not support each other in an inappropriate manner.
第33條 董事應秉持高度之自律，對董事會所列議案如涉有董事本身利害關係致損及公司利益之虞時，即應自行迴避，不得加入表決，亦不得代理其他董事行使其表決權。董事間亦應自律，不得不當相互支援。

The matters with regard to which a director shall voluntarily abstain from voting shall be clearly set forth in the rules for the proceedings of board meetings. A securities firm shall set forth the matters which shareholders¡¢directors¡¢supervisors and other stakeholders apply for director abstaining on a particular proposal in the rules. The rules shall include qualification of applicants¡¢procedure of applying and reviewing and deadline and formula of responding. The proposal that the director being applied for abstaining from voting shall abstain or not shall be submitted to the board for approval. Before resolution, the director shall not participate in or be proxy for voting on this proposal.
董事自行迴避事項，應明訂於董事會議事規則；證券商並應於該規則中訂定股東、董事、監察人及其他利害關係人，就特定議案申請董事迴避之規定，該規定應包括申請人資格、申請、審核程序及答覆之期限、方式。被申請人是否迴避應經董事會決議，決議前不得參與或代理該議案之表決。

Article 34 When a securities firm convenes a board meeting, relevant materials shall be duly prepared for reference and review by the directors participating in the meeting at any time. If two or more directors construe that the meeting materials are insufficient and such perspective is agreed by one or more independent directors, they may request the board of directors to postpone the respective agenda and the board of directors shall agree if such request is made.
第34條 證券商召開董事會時，應備妥相關資料供與會董事隨時查考。如有董事二人以上認為議題資料不充足，並經獨立董事一名以上同意時，得向董事會提出申請，要求延期審議該項議案者，董事會應予採納。

When the board deliberates on the proposals of internal control system, acquisition or the disposal of assets, conducting derivatives transactions and other material financial or operational transactions, sufficient consideration shall be given to the opinion of the audit committee or that of the independent directors. Any vote for or against the proposal and the reasons therefore shall be recorded in the minutes.
董事會討論內部控制制度、取得或處分資產、從事衍生性金融商品交易等重大財務業務行為時，應充分考量審計委員會或獨立董事之意見，並將其同意或反對之意見與理由列入會議紀錄。

During the proceeding of the board meetings, managers from the relevant departments who are not directors shall sit in at the meetings, make report on the current business conditions of the company and respond to inquires raised by the directors, so as to assist the directors in understanding the conditions of the company for the purpose of adopting an appropriate resolution.
董事會進行中非擔任董事之相關部門經理人員應列席會議，報告目前公司業務概況及答覆董事提問事項，以協助董事瞭解公司現況，作出適當決議。

Article 35 Staff personnel of a securities firm attending board meetings shall faithfully record meeting minutes in details and the summary, method of resolution, and voting results of all the proposals submitted to the board meeting in accordance with relevant regulations.
第35條 證券商董事會之議事人員應確實依相關規定詳實記錄會議報告及各議案之議事摘要、決議方法與結果。

The board meeting minutes shall be signed by the chairman and secretary of the meeting. The director attendance records should be kept completely. Board meeting minutes shall be treated as important corporate records and, during the life of the company, shall be placed in safekeeping permanently.
董事會會議紀錄須由會議主席和記錄人員簽名，董事出席狀況應完整記載，並應列入公司重要檔案，在公司存續期間永久妥善保存。

Where a resolution of the board of directors violates laws, regulations, articles of incorporation, or resolutions adopted in the shareholders´ meeting, and thus causing injury to the company, dissenting directors whose dissent can be proven by minutes or written statements will not be liable for damages.
董事會之決議違反法令、章程或股東會決議，致公司受損害時，經表示異議之董事，有紀錄或書面聲明可證者，免其賠償之責任。

Article 36 A Securities firm shall set forth in their articles of incorporation the scope of delegation to managing directors or the chairman when the board of directors is in recess. The delegation shall be specific, and general authorization is not permitted. When material interest of the company is involved, the matter shall be disposed of by a resolution of the board of directors.
第36條 證券商章程應明訂常務董事會或董事長在董事會休會期間行使董事會職權之授權範圍，其授權內容或事項應具體明確，不得概括授權，且涉及公司重大利益事項，仍應經由董事會之決議。

Article 37 A securities firm shall ask the appropriate corporate department or personnel to handle matters and implement actions pursuant to the board of directors´ resolutions in a way consistent with the program schedule and objectives. It shall also follow up on these matters and faithfully review their implementation.
第37條 證券商應將董事會之決議辦理事項明確交付適當之執行單位或人員，要求依計畫時程及目標執行，同時列入追蹤管理，確實考核其執行情形。

The board of directors shall ensure full control of the implementation and progress of these matters and make a report in subsequent meetings so as to ensure that the board´s management decisions are faithfully implemented.
董事會應充分掌握執行進度，並於下次會議進行報告，俾董事會之經營決策得以落實。

Subchapter 5 Fiduciary Duty, Duty of Care and Responsibility of Directors
第五節董事之忠實注意義務與責任

Article 38 Members of the board shall faithfully conduct corporate affairs and discharge this duty of care as a good administrator. In conducting the affairs of the company, they shall exercise their power with a hightened level of self-discipline and prudential attitude. Unless matters are reserved for resolutions in shareholders´ meetings by law or in the articles of incorporation of the company, they shall ensure that all matters will faithfully adhere to the board´s resolutions.
第38條 董事會成員應忠實執行業務及盡善良管理人之注意義務，並以高度自律及審慎之態度行使職權，對於公司業務之執行，除依法律或公司章程規定應由股東會決議之事項外，應確實依董事會決議為之。

Where resolutions of the board involve major policy directions of the corporate management, the board shall make careful consideration and may not affect the implementation and effectiveness of corporate governance.
董事會決議涉及公司之經營發展與重大決策方向者，須審慎考量，並不得影響公司治理之推動與運作。

Independent directors shall perform their duties in accordance with relevant laws, regulations and the company´s articles of incorporation so as to protect the interest of the company and shareholders.
獨立董事應按照相關法令及公司章程之要求執行職務，以維護公司及股東權益。

Article 39 If a resolution of the board of directors violates law, regulations or the company´s articles of incorporation, at the request of shareholders holding shares continuously for a year or an independent director, or at the notice of a supervisor to discontinue the implementation of the resolution, members of the board shall take appropriate measures or discontinue the implementation of such resolution as soon as possible.
第39條 董事會決議如違反法令、公司章程，經繼續一年以上持股之股東或獨立董事請求或監察人通知董事會停止其執行決議行為事項者，董事會成員應儘速妥適處理或停止執行相關決議。

Upon discovering any threat of the company suffering material injury, members of the board shall immediately report to supervisors in accordance with the foregoing paragraph.
董事會成員發現公司有受重大損害之虞時，應依前項規定辦理，並立即向監察人報告。

Article 41 According to the articles of incorporation or resolution adopted in a shareholders´ meeting, a securities firm may take out liability insurance for directors with respect to their liabilities resulting from exercising their duties during their terms of occupancy so as to reduce and spread the risk of material harm to the company and shareholders.
第41條 證券商得依公司章程或股東會決議，於董事任期內就其執行業務範圍依法應負之賠償責任為其購買責任保險，以降低並分散公司及股東重大損害之風險。

Article 42 Members of the board are advised to comply with the plans of Chinese Securities Association or Securities & Futures Institute (hereinafter referred to as "SFI") to participate in training courses of finance, business, commerce, accounting or law which cover subjects relating to corporate governance upon becoming directors and throughout their term of office. They shall also ensure that company employees at all levels will enhance their professionalism and knowledge of the law.
第42條 董事會成員宜依證券商公會或財團法人中華民國證券暨期貨市場發展基金會(以下簡稱證基會)之規劃，於新任時或任期中持續參加涵蓋公司治理主題相關之財務、業務、商務、會計或法律等進修課程，並責成各階層員工加強專業及法律知識。

Chapter IV Empowering the Supervisors
第四章發揮監察人功能

Subchapter 1 Duties of Supervisors
第一節監察人之職能

Article 43 A securities firm shall stipulate a fair, impartial, and open procedure for the election of supervisors and shall adopt the cumulative voting mechanism to fully reflect the opinions of the shareholders, unless a different mechanism has otherwise been implemented in the articles of incorporation.
第43條 證券商應制定公平、公正、公開之監察人選任程序，除章程另有規定外，應採用累積投票制度以充分反應股東意見。

The aggregate shareholding percentage of all of the supervisors of a securities firm shall comply with the laws and regulations. Restrictions on the share transfer of each supervisor and the creation, release, or other changes of any pledges over the shares held by each supervisor shall comply with the relevant laws and regulations, and the relevant information shall be fully disclosed.
證券商全體監察人合計持股比例應符合法令規定，各監察人股份轉讓之限制、質權之設定或解除及變動情形均應依相關規定辦理，各項資訊並應充分揭露。

Article 43- 1 Before a securities firm convenes the shareholders´ meeting to re-elect the supervisors, it would be advisable that the qualifications, education and work background and the existence of any other matters set forth in Article 30 of the Company Law and Article 53 of the Securities and Exchange Law with respect to the candidates recommended by shareholders or directors be reviewed in advance and the review result thereof be provided to shareholders for their reference, so that qualified supervisors will be elected.
第43-1條 證券商在召開股東會進行監察人改選之前，宜就股東或董事推薦之監察人候選人之資格條件、學經歷背景及有無公司法第三十條及證券交易法第五十三條所列各款情事等事項，進行事先審查，並將審查結果提供股東參考，俾選出適任之監察人。

Article 44 When a securities firm sets forth the number of supervisors in its articles of incorporation, it shall evaluate the appropriate number on an overall basis. Those who act as supervisors shall have ample professional knowledge and skill, work experiences, posses an honest, practical, fair, and impartial attitude, and shall truly evaluate whether or not they will have sufficient time and energy to devote themselves to acting as supervisors.
第44條 證券商章程訂定監察人人數時，應就整體適當人數酌作考量，擔任監察人者須具備豐富之專業知能、工作經驗以及誠信踏實、公正判斷之態度，並確實評估能有足夠之時間與精力投入監察人工作。

Article 45 A supervisor shall be familiar with the relevant laws and regulations, understand the rights, obligations, and duties of directors of the company and the functions and duties, and operation of each department, and attend regular meetings of the board of directors to supervise the operations and to state his/her opinions when appropriate so as to control or discover any abnormal situation early on.
第45條 監察人應熟悉有關法律規定，明瞭公司董事之權利義務與責任，及各部門之職掌分工與作業內容，並經常列席董事會監督其運作情形且適時陳述意見，以先期掌握或發現異常情況。

Article 46 A supervisor shall supervise the implementation of the operations of the company and the performance of duties by directors and managers and care the enforcement of the internal control system so as to reduce the financial and operational risks of the company.
第46條 監察人應監督公司業務之執行及董事、經理人之盡職情況，並關注公司內部控制制度之執行情形，俾降低公司財務危機及經營風險。

Where a director, for himself/herself or on behalf of others, conducts any legal act with the company, a supervisor shall act as the representative of the company. In the event that there is any independent supervisor, to enhance supervision, it is advisable that the independent supervisor shall act as the representative of the company in the above situation.
董事為自己或他人與公司為法律行為時，應由監察人為公司之代表。如有設置獨立監察人時，為加強監督，宜由獨立監察人為公司之代表。

Article 47 A supervisor shall investigate the operational and financial conditions of the company from time to time and the relevant departments in the company shall provide the books or documents that will be needed for the supervisor´s review.
第47條 監察人得隨時調查公司業務及財務狀況，公司相關部門應配合提供查核所需之簿冊文件。

When reviewing the finance or operations of the company, a supervisor may retain attorneys or accountants on behalf of the company to perform the review; however, the company shall inform the relevant persons of their confidentiality obligations.
監察人查核公司財務、業務時得代表公司委託律師或會計師審核之，惟公司應告知相關人員負有保密義務。

The board of directors and managers shall submit reports in accordance with the request of the supervisors and shall not for any reason obstruct, circumvent, or refuse the inspection of the supervisor.
董事會或經理人應依監察人之請求提交報告，不得以任何理由妨礙、規避或拒絕監察人之檢查行為。

When a supervisor performs his/her duties, a securities firm shall provide necessary assistance as needed by the supervisor, and the reasonable expenses that the supervisor needs shall be borne by the company.
監察人履行職責時，證券商應依其需要提供必要之協助，其所需之合理費用應由公司負擔。

Article 48 For supervisors to timely discover any possible irregular conduct in the company, a securities firm shall establish a channel for supervisors to communicate with the employees, shareholders, and stakeholders.
第48條 為利監察人及時發現公司可能之弊端，證券商應建立員工、股東及利害關係人與監察人之溝通管道。

Upon discovering any irregular conduct, the supervisors shall take appropriate measures timely to curb the expansion of the irregular conduct and shall file a report to the relevant regulatory authorities or agencies if necessary.
監察人發現弊端時，應及時採取適當措施以防止弊端擴大，必要時並應向相關主管機關或單位舉發。

Where any of the independent directors, general managers, officers of finance, accounting, and internal audit department, or CPAs resigns his/her position, the supervisors shall further investigate the cause of the resignation.
證券商之獨立董事、總經理及財務、會計、內部稽核部門主管人員或簽證會計師如有請辭或更換時，監察人應深入了解其原因。

In the event that a supervisor neglects his/her duties and therefore causes harm to the company, the supervisor shall be liable to the company.
監察人怠忽職務，致公司受有損害者，對公司負賠償責任。

Article 49 When exercising his/her supervision power, each supervisor of a securities firm may convene a meeting to exchange opinions among all the supervisors when he or she feels necessary, but may not by such way obstruct supervisors in exercising their duties.
第49條 證券商之各監察人分別行使其監察權時，基於公司及股東權益之整體考量，認有必要者，得以集會方式交換意見，但不得妨害各監察人獨立行使職權。

Article 50 According to the articles of incorporation or resolution adopted in a shareholders´ meeting, a securities firm may purchase liability insurance for its supervisor(s) with respect to their liabilities resulting from exercising their duties during their terms of occupancy so as to reduce and spread the material harm to the company and shareholders.
第50條 證券商得依公司章程或股東會決議，於監察人任期內就其執行業務範圍依法應負之賠償責任為其購買責任保險，以降低並分散公司及股東重大損害之風險。

Article 51 A supervisor shall exercise a high degree of self-discipline and shall voluntarily abstain from being involved in a proposal from which the supervisor´s own interest might create a possible adverse impact on the interest of the company.
第51條 監察人應秉持高度之自律，對議案如涉有監察人本身利害關係致損及公司利益之虞時，即應自行迴避。

Article 52 Supervisor(s) are advised to participate in training courses of finance, business, commerce, accounting or law which cover subjects relating to corporate governance when he/she assumes the position and shall do the same or during his/her term of office pursuant to the plan of the Chinese Securities Association and the Institute of Securities Futures.
第52條 監察人宜依證券商公會或證基會之規劃，於新任時或任期中持續參加涵蓋公司治理主題相關之財務、業務、商務、會計或法律等進修課程。

Subchapter 2 Independent Supervisor System
第二節獨立監察人制度

Article 53 The independent supervisor(s) of a securities firm shall be elected by its shareholders´ meeting after compliance with Article 43-1 , if the shareholders´ meeting has decided to elect so. Article 25II hereof shall apply mutates mutandis to the qualifications and other requirements of independent supervisor(s). In case of any shortfall, an election of additional independent supervisors shall be timely held.
第53條 證券商如經股東會決議設置獨立監察人者，經依第四十三條之一規定辦理後，由股東會選舉產生；其資格條件、認定標準等事項，準用第二十五條第二項規定。獨立監察人席次如有不足時，應適時辦理增補選事宜。

It would be advisable for independent supervisors to reside in Taiwan so as to perform their supervisory function timely.
獨立監察人宜在國內有住所，以即時發揮監察功能。

Article 54 A securities firm shall set forth the compensation of supervisor(s) in its Articles of Incorporation or by a resolution of its shareholders´ meeting. Independent supervisor(s) shall be paid a reasonable amount of compensation which may be different from that payable to the company´s supervisors.
第54條 證券商應於章程或經股東會決議明訂監察人之報酬，對於獨立監察人得酌訂與一般監察人不同之合理報酬。

A securities firm shall value the function of independent supervisor(s) so as to strengthen the risk management and financial and operational controls of the company.
證券商應重視並充分發揮獨立監察人之功能，以加強公司風險管理及財務、營運之控制。

Chapter V Respecting Stakeholders and Interested Persons´ Right
第五章尊重投資人及利害關係人權益

Article 55 A securities firm shall maintain communications with its banks, other creditors, employees, investors or other companies with whom the company has business relationship and shall respect and protect their legal rights.
第55條 證券商應與往來銀行及其他債權人、員工、投資人、業務往來公司之利益相關者，保持暢通之溝通管道，並尊重、維護其應有之合法權益。

In the event that the legal rights of a stakeholder are harmed, the company shall handle such matter in a proper manner and in good faith.
當利害關係人之合法權益受到侵害時，公司應秉誠信原則妥適處理。

Article 56 The company shall provide sufficient information to banks and its other creditors to facilitate their evaluation of the operational and financial conditions of the company and decision making process. When any of their legal rights or interest is harmed upon, the company shall respond with a responsible attitude and assist creditors in obtaining compensation through proper means.
第56條 對於往來銀行及其他債權人，應提供充足之資訊，以便其對公司之經營及財務狀況，作出判斷及進行決策。當其合法權益受到侵害時，公司應正面回應，並以勇於負責之態度，讓債權人有適當途徑獲得補償。

Article 57 A securities firm shall not only respect and protect the legal rights of investors, but also conduct its business in good faith and handle all disputes properly.
第57條 證券商對投資人之合法權益，除予以尊重、維護外，並應確守誠實信用原則執行業務，妥善處理交易糾紛。

Article 58 A securities firm shall establish communication channels with employees and encourage employees to communicate directly with the management, directors and supervisors so as to reflect employees´ opinions about the management, financial conditions and material decisions of the company concerning employee welfare.
第58條 證券商應建立員工溝通管道，鼓勵員工與管理階層、董事或監察人直接進行溝通，適度反映員工對公司經營及財務狀況或涉及員工利益重大決策之意見。

Article 59 In developing its normal business and maximizing the shareholders interest, a securities firm shall pay attention to investor´s interests, orders of securities markets, and shall have a high regard for the social responsibility of the company.
第59條 證券商在保持正常經營發展以及實現股東利益最大化之同時，應關注投資人權益、證券市場交易秩序等問題，並重視公司之社會責任。

Chapter VI Improvement of Information of Transparency
第六章提升資訊透明度

Subchapter 1 Disclosure of Enhancing Information Disclosure
第一節強化資訊揭露

Article 60 A securities firm shall perform its disclosure obligations faithfully in accordance with the relevant laws and regulations.
第60條 證券商應確實依照相關法令之規定，忠實履行資訊揭露之義務。

A securities firm is advised to establish a public web-reporting system, appoint personnel responsible for gathering and disclosing the information and establish a spokesperson system so as to ensure the proper and timely disclosure of information about policies affecting shareholders and stakeholder.
證券商宜建立公開資訊之網路申報作業系統，指定專人負責公司資訊之蒐集及揭露工作，並建立發言人制度，以確保可能影響股東及利害關係人決策之資訊，能夠及時允當揭露。

Article 62 In order to enhance the accuracy and timeliness of the information disclosed, a securities firm shall a appoint spokesperson and acting spokesperson who understand thoroughly the company´s financial and business conditions and who are capable of coordinating among departments for gathering relevant information and representing the company in making statements independently.
第62條 為提高重大訊息公開之正確性及時效性，證券商應選派全盤瞭解公司各項財務、業務或能協調各部門提供相關資料，並能單獨代表公司對外發言者，擔任公司發言人及代理發言人。

A securities firm shall appoint one or more acting spokesperson who shall represent the company, when the spokesperson cannot perform his/her duties, in making statements independently, provided that the order of authority is established to avoid any confusion.
證券商應設有一人以上之代理發言人，且任一代理發言人於發言人未能執行其發言職務時，應能單獨代理發言人對外發言，但應確認代理順序，以免發生混淆情形。

In order to implement the spokesperson system, a securities firm shall unify the process of making external statements and require management and employees to maintain the confidentialities of financial and operational secrets and prohibit disclosure thereof by them at will.
為落實發言人制度，證券商應明訂統一發言程序，並要求管理階層與員工保守財務業務機密，不得擅自任意散布訊息。

Article 63 In order to keep shareholders and stakeholders fully informed, it is advisable for a securities firm to take advantage of the convenience of the Internet and to set up a web site containing the information regarding the company´s finance, operation and corporate governance. It is also advisable to contain the corporate governance information in English as well.
第63條 證券商宜運用網際網路之便捷性架設網站，建置公司財務業務相關資訊及公司治理資訊，以利股東、及利害關係人等參考，並宜提供英文版公司治理相關資訊。

To avoid misleading information, the aforesaid web site shall be maintained by specified personnel, and the recorded information shall be accurate, in detail and updated timely.
前項網站應有專人負責維護，所列資料應詳實正確並即時更新，以避免有誤導之虞。

Subchapter 2 Disclosure of Information of Corporate Governance
第二節公司治理資訊揭露

Article 64 A securities firm shall disclose the following relevant information regarding corporate governance for the fiscal year in accordance with laws and regulations and the regulations of the TSE, GTSM or Chinese Securities Associations:
第64條 證券商應依相關法令及證券交易所、櫃檯買賣中心或證券商公會章則規定，揭露下列年度內公司治理之相關資訊：

1. corporate governance framework structure and rules;
一、公司治理之架構及規則。

2. ownership structure and shareholders´ equity;
二、公司股權結構及股東權益。

3. structure and independence of board of directors;
三、董事會之結構及獨立性。

4. responsibility of the board of directors and managerial personnel;
四、董事會及經理人之職責。

5. composition, duties and independence of supervisors;
五、監察人之組成、職責及獨立性。

6. the progress of training of directors and supervisors;
六、董事、監察人之進修情形。

7. risk management information;
七、風險管理資訊。

8. shareholders´ rights and relationship;
八、利害關係人之權利及關係。

9. details of the events subject to information disclosure required by law and regulations;
九、對於法令規範資訊公開事項之詳細辦理情形。

10. the enforcement of corporate governance, deficiency between the corporate governance principles implemented by the company and the Principles, and the reason for the deficiency; and
十、公司治理之運作情形和公司本身訂定之公司治理守則及本守則之差距與原因。

11. other information regarding corporate governance.
十一、其他公司治理之相關資訊。

The Taiwan branches of foreign securities firms may choose not to disclose the matters set forth in items 2 to 6 in the preceding paragraph.
外國證券商在台分公司得不揭露前項第二款至第六款規定事項。

A securities firm is advised, according to the actual performance of the corporate governance system, to disclose the plans and measures to improve its corporate governance system through appropriate mechanisms.
證券商宜視公司治理之實際執行情形，採適當方式揭露其改進公司治理之具體計畫及措施。

Chapter VII Ancillary Rules
第七章附則

Article 66 A securities firm shall at all times monitor domestic and international development of corporate governance and thereby review and improve the company´s corporate governance mechanism so as to enhance performance of corporate governance.
第66條 證券商應隨時注意國內與國際公司治理制度之發展，據以檢討改進公司所建置之公司治理制度，以提昇公司治理成效。