Taiwan ranks fifth among 12 Asia-Pacific markets for corporate governance, according to a biennial report released Dec. 5 by Hong Kong-based nonprofit Asian Corporate Governance Association and brokerage CLSA.
Retaining its position from the previous edition, Taiwan finished ahead of Japan and India, tied for seventh; and South Korea, ninth, but behind Malaysia, fourth. Australia maintained top spot, followed by Hong Kong and Singapore.
Highlighting Taiwan’s Corporate Governance Roadmap for 2018-2020 launched in April, the report said the nation is making strides in areas spanning audit committees, enforcement and independent directors.
From the seven main assessment categories, Taiwan placed among the top three in government and public governance alongside Australia and Hong Kong owing to factors such as strong anti-corruption bodies and the quality of its legal system and judiciary. It also finished fourth in the classification examining the capacity-building, funding and reforms of regulators.
While praising the nation’s diversifying civil society and growth potential, the survey highlighted several areas for improvement including minority shareholder rights and private sector funding for nonprofit corporate governance organizations.
Titled “Hard Decisions,” the ninth edition of the ACGA report also evaluated the strategic decisions facing market participants in the region across areas including corporate disclosures and dual-class stocks versus one share, one vote. It comprises two sections: a survey on the quality of macro corporate governance in the 12 Asia-Pacific markets, and an analysis on related practices at large-cap firms. (KWS-E)
Write to Taiwan Today at ttonline@mofa.gov.tw