HTC 2015 Annual Report Download - page 29

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Business operations
Business operations
54
55
Corporate Governance
HTC is committed to implementing good governance, eective risk management and informa-
tion transparency. HTC policies related to these corporate governance are explained further
below:
Independent Director Positions Created
InaccordancewiththeSecuritiesandExchangeLaw,HTCelectedtwoindependentdirectorsat
its board re-elections in 2007, in order to strengthen the independence and functions of Direc-
torsandenhancetheoperationaleectivenessoftheBoard.
Remuneration Committee Created
Incompliancewiththe“RegulationsGoverningtheAppointmentandExerciseofPowersbythe
Remuneration Committee of a Company whose stock is listed on the Stock Exchange or Traded
Over-the-Counter” as per Letter No.1000009747 issued by the Financial Supervisory Commis-
sionoftheExecutiveYuanonMarch18,2011,theBoardofDirectorsresolvedtoadopttheCom-
pany’s Compensation Committee Charter and the Committee shall consist of three members
who are appointed by resolution of the board of directors. The current second remuneration
committeemembersareindependentdirectorMr.Chen-KuoLin;independentprofessional
advisorsMr.WeiTi-HsiangandMr.Yeong-ChengWu.TheocialfunctionsoftheCommittee
aretoprofessionallyandobjectivelyevaluatethepoliciesandsystemsforthecompensationof
HTCdirectors,supervisors,andmanagers,andsubmitrecommendationstotheBoardofDirec-
tors for its reference in decision making.
Board of Supervisor Proceedings
MeetingsoftheBoardofSupervisorstakeplaceeveryquarter,atwhichnancial,legal,internal
auditandotherissuesarereported.Issuesreviewedbysupervisorsandcertiedpublicaccoun-
tants include risk management, intercompany transactions, changes in accounting policies,
assessmentsofIPRinfringementrisk,andreasonablenessofprovisionandaccrualitemstobe
presented on financial reports.
Disclosure of Information & Financial
Forecasts
HTC has been working diligently to enhance the timeliness and transparency of financial disclo-
sures.InadditiontoonlinedisclosureofimportantdatarelatedtoHTC’sbusinessinaccordance
with regulations, quarterly earnings calls are held for investors every quarter, at which revenue,
marginandexpenseofthepriorquarterareprovided.Investorteleconferencesarealsoheld
to keep investors updated on the business operations. Apart from regular disclosures, HTC
also participates actively in investor forums and conferences in Taiwan and overseas as well as
proactivelyvisitsmajorinvestmenthousesandinvestorstoenhancecommunicationwiththe
investment community.
Stable Dividend Policies
HTC maintains stable dividend policies. Factors considered in determining dividend distribu-
tions include current and future investment environments, capital needs, domestic and interna-
tional competition, and budgetary considerations. Shareholder interests and the balance be-
tweendividenddistributionsvs.longer-termnancialplanningarealsoconsidered.TheBoard
of Directors, in accordance with regulations, sets a distribution plan each year for submission to
shareholders.