Board of Directors

2. The Communications between the Independent Directors and Internal Auditors

The internal auditors have sent the audit reports to the members of the Audit Committee monthly and presented the findings of all audit reports in the reguarly meetings of the Audit Committee. The communication channel between the Audit Committee and the internal auditors functioned well.

1. Sucession Planning for Board Members

The Board of Directors currently consists of nine Directors (including three independent Directors). The members of the Board of Directors have professional qualifications in commerce, law, finance and accounting or other professional backgrounds necessary for the Company's business, experience, decision-making ability, management ability, etc. In the future, the composition of the Board of Directors and the required professional qualifications of the members will remain the same as the current structure.

With regard to succession planning for Board members, in addition to possessing the professional knowledge and skills required to perform their duties, their personality traits and values must also be consistent with the company's core values, culture and business philosophy. In order to maintain the professionalism and experience of the Board members, the sucession planning for the general directors is mainly based on the nomination of candidates recommended by the current Directors. As the independent directors are required to have the necessary professional experience in commerce, law, finance, accounting, or corporate business in accordance to laws and regulations. Therefore the sucession planning for the independent directors comes from the industry and the academia. In addition to the professional qualifications and personality traits mentioned above, the results of the Board's performance evaluation are used as a reference for the nomination of directors for successors. In view of the directors' profesional qualifitions, the Company provides professional training for directors, with a minimum of six hours per year for each countinuing director and a minimum of twelve hours for each newly appointed director. To enhance the effectiveness of the Board's operations. 

2. Sucession Planning for Key Management

As well as having the necessary prodessional skills and experience, key management personnel should have a strong alignment with the company's core values, culture and business philosophy. Staff at or above the rank of Director (including) are considered key management personnel and have duty agents are actively developed. In addition to recruiting outstanding talent from outside the company continues to actively develop potential key managers from within. Individual conseling, work exchanges, and experience transfer are used to strengthen the future management team and to select sucessor candidates from among them.