HTC 2015 Annual Report Download - page 42

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Corporate governance
Corporate governance
80
81
(2) Supervisor participation in Board of Directors meetings
The SeventhBoardofDirectorsconducted12(A)meetings.TheSupervisors'attendancestatusisasfollows:
Title Name AttendanceinPersonB AttendanceRate(%)【B/A】Notes
Supervisor Wei-ChiInvestmentCo.,
Ltd. Representative: Shao-Lun Lee 12 100%
Supervisor Huang-Chieh Chu 12 100%
Other matters to be included:
1. Composition and Responsibilities of Supervisors:
ThestructureoftheSupervisors'MeetingsatHTCiswellestablishedanditcarriesoutsomefunctionsatthe
audit committee.
(1) Supervisor communication with employees and shareholders (e.g., channels and methods of
communication)SupervisorscanmakeuseofchannelssuchasSupervisorsMeetings,BoardofDirectors
meetings,ShareholdersMeetings,andinternalauditreportstocommunicatewithmanagement-level
officers and with shareholders.
(2)SupervisorcommunicationwithChiefInternalAuditorandCPAs(e.g.,financialandoperationalmatters
on which they communicate, their methods, and results)
HTCSupervisorscommunicatethroughtheirregularquarterlySupervisorMeetingswithHTC'sfinancial,
legal,andinternalauditofficers,whoreporttotheSupervisorsonissuessuchasriskmanagement,major
litigations, and internal audit reports.
Basedontheprincipleofsound,conservativeaccounting,HTC'sSupervisorsandCPAsregularly
undertakejointreviewsofmajoraccountitemsinthefinancialstatementstoassessthereasonableness
of basic assumptions underlying various allowances and reserves. Assessments are also performed and
reserves taken against potential liabilities associated with intellectual property risks in order to reduce
the impact on HTC's finances.
SupervisorsalsoholdregularprivatemeetingswithCPAs.Supervisorsmustfirstreviewandbesatisfied
withtheCPA'sindependenceandprofessionalfeesbeforesuchmattersaresubmittedtotheBoardof
Directors for resolution.
In2015,themanagementteamcontinuouslyemphasizedandprovidedfullsupportoncorporate
governance. All departments in the company conducted risk-oriented internal control assessment to
evaluate the controls' efficiency and effectiveness, for the purpose of improving the internal control
system.Intheareaofinternalcontrolself-assessment,HTChasaskedalldepartmentstoevaluate
the efficiency and effectiveness of their controls' design and execution to ensure the concreteness and
transparency of the internal control system statement. All departments were required to issue individual
internal control system statements based on their assessment results and the company would issue the
internal control system statement based on individual department assessment results.
2. IfSupervisorsinattendanceataBoardmeetingstateopinions,themeetingdate,sessionnumber,agenda,
and result of resolutions must be noted, along with the company's handling of the Supervisors' opinions.
TherehasbeennoinstanceofaSupervisorexpressingadissentingopinionregardingaBoardresolution
during the most recent fiscal year.