Asus 2011 Annual Report Download - page 33

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29
(III) Corporate governance and the deviation from the Rules Governing Listed & OTC corporate
governance and the causes
Item Operation
Deviation from the
Rules Governing Listed
& OTC corporate
governance and the
causes
1. Equity structure and shareholders’ equity
(1) The way the company processes the
suggestion and disputes of shareholders
(2) The main shareholders of the company
and the responsible personnel of the main
shareholders
(3) The company establishes the business
risk control mechanism and firewall
with the related party
1. The spokesman is designated. Stock agent is
to process stock affairs.
2. The main shareholders of the company and
the responsible personnel of the main
shareholders are in the shareholders’ roster
and the company is to have a good relation
kept with them.
3. The company has established risk control
mechanism and firewall in accordance with
the “Corporate Governance Law of
Subsidiary,” “Loans and Endorsement and
Guarantee Procedures,” and “Assets
Acquisition and/or Disposition Procedure.”
No deviation
No deviation
No deviation
2. The formation and the responsibility of the
board of directors
(1) The independent directors of the
company
(2) Evaluate the independence of the
independent auditor periodically
1. Not yet setup
2. The CPA’s independence must be evaluated
periodically. The company’s Board of
Directors has the CPAs contracted.
Under consideration
No deviation
3. Establish a communication channel with
the related party
There are proper communication channels
available by phone and e-mail.
No deviation
4. Publication of information
(1) The company has a website setup to
disclose financial information and
business management
(2) The company has adopted other
information disclosure methods (for
example, setup website in English,
designate personnel to collect and
disclose information of the company,
substantiate the spokesman system, and
publish the public offering meeting on
the website)
1. The company has a website
(http://www.asus.com) setup to disclose
financial information and business
management (relationship with investors)
and to explain the corporate governance of
the company to the investors in the
shareholders meeting and public offering
meeting.
2. Designate personnel to collect and disclose
information of the company; also,
substantiate the spokespersons system to
communicate to the public.
No deviation
No deviation
5. The operation of the company’s
nomination, remuneration, and other
functional committees
The company already set up the Compensation
Committee. Please refer to the (IV)
Compensation Committee Operations for more
information.
No deviation
6. If the company has corporate governance rules stipulated according to the “Rules governing Listed/OTC corporate
governance,” please state the variation of the business operation from the rules:
The company’s corporate governance rules are in planning; however, directors and supervisors have exercised their
obligations and internal control system in accordance with the spirit and regulation of the “Rules governing
Listed/OTC corporate governance.”