On March 17, 2017, the Board of Directors adopted the Audit Committee Charter, and on June 7, 2017, the shareholders’ meeting approved the establishment of the Audit Committee to replace the Supervisor system. The Audit Committee is composed entirely of independent directors and convenes at least once every quarter. Its purpose is to assist the Board in overseeing the quality and integrity of the Company’s accounting, auditing, financial reporting processes, and internal controls.

Primary Responsibilities:

1. Establish or amend internal control systems in accordance with Article 14-1 of the Securities and Exchange Act.
2. Assess the effectiveness of internal control systems.
3. Establish or amend procedures for significant financial operations such as acquisition or disposal of assets, derivative transactions, lending funds to others, endorsements, or guarantees, in accordance with Article 36-1 of the Securities and Exchange Act.
4. Review matters involving directors’ own interests.
5. Review significant asset or derivative transactions.
6. Review significant lending, endorsements, or guarantees.
7. Review fundraising, issuance, or private placement of equity-related securities.
8. Appointment, dismissal, or compensation of certified public accountants.
9. Appointment or dismissal of financial, accounting, or internal audit officers.
10. Review financial reports.
11. Other material matters as required by the Company or competent authorities.

To strengthen corporate governance and establish a sound compensation system for directors, supervisors, and managers, the Company set up the Compensation Committee on October 26, 2016, in accordance with the “Regulations Governing the Establishment and Exercise of Powers of Compensation Committees of Companies Whose Stock is Listed on the TWSE or Traded on the TPEx” issued by the Financial Supervisory Commission.

The Committee members are appointed by the Board of Directors and assist in formulating and periodically reviewing policies, systems, standards, and structures for performance evaluation and compensation of directors, supervisors, and managers. The Committee also regularly evaluates and determines the compensation of directors, supervisors, and managers. For details on committee meetings, please refer to the Company’s annual report.