Page 46 - 2017 TSMC Annual Report

Assessment Item
Implementation Status
Non- implementation and Its Reason(s)
Yes
No Explanation
V
(1) For employee employee rights and employee employee wellness please refer to “5 5 5 Human Capital” on page 85-89 of this Annual Report (2) For investor relations relations supplier relations relations and rights of stakeholders please refer to “7 Corporate Social Responsibility” on on page 118-135 of this Annual Report (3) For Directors’ training records please refer to to “Continuing Education/Training of of Directors” on page 44-45 of of this Annual Report (4) For Risk Risk Risk Management Policies and Risk Risk Risk Evaluation please refer to “6 3 Risk Risk Risk Management” on page 103-115 of this Annual Report (5) For Customer Customer Relations Policies please refer to to to “5 4 Customer Customer Trust” on on page 83-85 of this Annual Report (6) TSMC maintains D&O Insurance for its directors and of cers 8 Has the the Company disclosed other information to to facilitate a a a a a a a a a better None understanding of its corporate governance practices (e g g g g including but
not limited to to employee employee rights employee employee wellness investor relations supplier relations rights of stakeholders directors’ training records the implementation of risk risk management policies and risk risk evaluation measures the implementation of customer relations policies and purchasing insurance for directors)?
9 The improvement status for the result of Corporate Governance Evaluation announced by
Taiwan Stock Exchange
TSMC was ranked in in in in in top 5% in in in in in Corporate Governance Evaluation in in in in in 2016 and 2017 The implementation status regarding below three non-scoring items:
(1) Establishment a a a a a a a a a a a a a a a a a formal formal code code of of of of practice practice for for for for corporate corporate governance: as the the explanation of of of of Assessment Item
1 1 of of of of this table although the the Company does not have a a a a a a a a a a a a a a a a a formal formal code code of of of of practice practice for for for for corporate corporate governance governance however TSMC has has always been highly regarded as as as as the the industry leader in in in implementing comprehensive corporate governance governance practices In addition the the Company also has has a a a a a a a a a a a a a a a a a world-class Board of Directors The Company believes that corporate corporate governance governance is based on on on integrity professional management and implementation TSMC has been proving its its excellent corporate corporate governance governance in in in in its its operating performance and and continued winning of domestic and and international awards on on on best corporate governance company (2) Training of of of of of Directors: TSMC’s Board of of of of of Directors Directors consists of of of of of distinguished members with a a a a a a a a a a a a a great breadth of of of of of experience as as world-class business leaders or or or or professionals The Company continually arranges relevant relevant training for Directors Directors Directors during Board meetings and Directors Directors Directors also participate relevant relevant course as as needed For details please refer to to to to the below table “Continuing Education/Training of Directors Directors Directors in in in in in in in in in 2017” (3) Voluntary disclosure of Directors’ compensation compensation on on on on an an an an individualized individualized basis: From 2016 TSMC discloses compensation compensation paid to to to Directors Directors President & Co-CEO and Chief Financial Of cer on on on on an an an an individualized individualized basis in its Annual Annual Reports For details please refer to to to to “2 “2 4 2 2 2 2 2 Remuneration Paid Paid to to to to Directors” and and and “2 “2 5 2 2 2 2 2 Compensation Paid Paid to to to to President President & Co-CEO and and and Vice Presidents” of 2016 and and and this Annual Annual Report Report Continuing Education/Training of Directors in in in in in 2017 The major training methods of Directors includes:
● At quarter Board meetings TSMC management regularly presents updates on the Company’s business regulatory developments
and other information to to Directors ● The Company arranges speeches regarding politics economics and regulatory compliance etc ● At quarter Audit Committee meetings regular regulatory update reports are provided by
by
TSMC’s General Counsel and by
by
the Company’s independent auditors and ● Directors participate relevant training courses as needed In addition from time time to to to to time time Directors are invited by
other parties to to to to give speeches on on corporate governance and related topics 044