Information for Investors

Company information

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Equity structure

List of Shareholders: Top 10 Shareholders

1. National Development Fund under the Executive Yuan
2. Yaohua Glass Co., Ltd. Management Committee
3. Delta Electronics, Inc
4. JP Morgan Managed Advanced Stars advanced aggregate International Equity Index
5. JPMorgan Chase The Norwegian Central Bank Investment Dedicated Account
6. Shen ching hsiung
7. Vanguard Emerging Market Stock Index Fund Dedicated Account,managed by Vanguard Group, under custody of JP Morgan, Taipei Branch.
8. CITI BANK TRUST ACCOUNT (DFA Emerging Markets Core Securities Investment Account)
9. Credit Suisse TRUST ACCOUNT (iShares Emerging Markets ETF)
10. CITI Bank of Taiwan Managed Secondary Emerging Markets Evaluation Fund account

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Corporate governance implementation

BOD passed resolution to appoint Corporate Governance officer Zabrina Hsu (Vice President & URECO General Counsel), who have 3 years and above of experience as legal executives of listed company, and continue professional training as per regulatory requirements. Main duties of Corporate Governance Officer are supervise Finance Department shareholder service unit attend to BOD and annual general meetings process, compose meeting minutes, information disclosure, provide relevant documents, act in accordance with regulations and further professional training of Directors.

Business execution as follow:

1. Assisted all Directors in exercise their duties to company, provide documents and arrange professional training
   • Follow the new development of the relevant industries and new regulations, and update regularly
   • Handle the confidential information classification, provide documents needed by Directors, maintain communication between Directors and executive officers.
   • Arrange meetings between internal auditors and attesting CPA
   • Arrange professional training courses for Directors
2. Procedure and Compliance
   1. Report corporate governance matters to BOD and Committees. Make sure annual general meeting and BOD comply with regulations
   2. Assist and remind Directors the regulation govern the BOD
   3. Important resolutions have to be announced after BOD, make sure announcement comply with regulation and is correct to protect symmetric information for all investors.
3. Calling a Board Meeting and offering all information related to meetings shall be notified to each directors and independent directors at least seven days in advance. If any director is an interested party with any proposal, they cannot participate in discussion or vote on it. Board Meeting minutes shall be prepared within 20 days after the meeting.
4. Registering the date of Shareholders Meeting in advance, and preparing the notice, proposals, meeting manuals and meeting minutes before the legal due date. Handling the amendment of corporate registration if any re-election of directors or the amendment on the Articles of Incorporation.

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Internal Audit

Purpose of Internal Audit

The role of internal audit is to help BOD and executive management in making sure that organisation’s risk management, governance and internal control processes are operating effectively. And assessing and making recommendations on the effectiveness of the existing controls, informed BOD and executive management accountable decision making with regard to ethics, compliance, risk, economy and efficiency. Provide timely recommendations in order to make sure internal controls are effective or improvements to better internal controls.

Internal Audit Organization

As per Article 11 of Regulations Governing Establishment of Internal Control Systems by Public Companies, A public company shall establish an internal audit unit under the board of directors. Appointment or dismissal of the chief internal auditor shall be subject to approval by the audit committee and be submitted to the board of directors for a resolution.

Operation of Internal Audit

URECO has established an audit committee, it’s members are Independent Directors. Chief Internal Audit, should submit audit report to Audit Committee every month, and present internal audit report in quarterly Audit Committee meetings, follow up on the matters and prepare follow-up reports at least on a quarterly basis until such time as correction is made, to ensure that the relevant departments have taken appropriate corrective measures in a timely manner. Chief Internal Audit and Audit Committee have established excellent communication.

Internal Audit draw up annual audit plan base on Articles 7, 8, 9, 13, 22 of the Regulations Governing Establishment of Internal Control Systems by Public Companies and other relevant regulations and risk control relevance. And the plan will be executed within the year, to assess company’s internal control design is reasonable, comprehensive and effective.

As per regulations, this department completes following via Internet-based information system within statutory period

• annual audit plans by end of December
• Information on Chief Internal Audit and Staffs by end of January
• Execution of previous year’s annual audit plan by end of February
• Internal Control System Statements by end of March
• The status of correction of defects and irregularities of internal control systems by end of May