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Corporate Governance

 

Operation of the Board

To ensure sound supervision and strengthen the management mechanism, the Board has established a salary reward committee to periodically evaluate the target achievements of the Chicony Board members, supervisors and managers and their respective salary content and level.


The Board members should be able to provide professional and objective opinions according to their various professions and fields to assist the Board to make best decisions for the company and the shareholders. To protect the Board members and supervisors from personal responsibilities and financial loss from any third party litigation resulting from the performance of their duties, from August 2002, the company has purchased insurance for the Board members and supervisors every year.


The auditing office reports directly to the Board and helps the managers supervise and evaluate the effectiveness of the internal control system.


Salary committee

To ensure salaries comply with the related regulations and are sufficient to attract talent, Chicony has established a salary committee consisting of three members. In addition to reflecting periodically the “salary committee organizational regulations” and making revisions and suggestions, setting up and reviewing the annual and long-term performance target of the Board members, supervisors and managers as well as the policy, system, standard and structure of the salary, it also periodically evaluates the performance achievements of the Board, supervisors and managers and decides on the respective salary content and level.


Transparent Financial Information

Through an established spokesperson and representation system, Chicony provides transparent information to the investors via an information station, legal person information sessions, magazines and newspapers. There is also a stock affairs office that deals with shareholder suggestions and disputes. Shareholder opinion and information is collected by the administrative, financial and general management offices. After all the responses have been gathered and considered, the company will make its own response.


Chicony discloses company organizational structure, finances, sales, important decisions made at shareholder’s and the Board meetings, related regulations, the company operations as well as the differences and causes for the gap between the company’s operation and the “listed companies’ operation and practice guidelines” by the authority in charge, on the official company website.



Risk Management

Overall corporate risks caused by external factors include the risk of market changes, the risk of product replacement, that of competition amongst companies and the risks of the capital and financial markets. To reduce the danger of such risks, all departments at Chicony collect related information according to their function so as to take control and deploy contingency measures to avoid crises.


Chicony’s own internal operating risks include the risk of material supply shortages, the risk of employee turnover, new product development, customer credit and bad debt, foreign exchange fluctuations, corporate financial management, and computer crashes and information system breakdown. The risk level can be high, medium, or low, and high level risks need to be managed with additional control.