FALCON MACHINE TOOLS CO.,LTD. (hereafter referred to as FALCON) is committed to maintaining its high standard of business ethics, effective accountability, and sound corporate governance in every aspect of business. Such an honest and responsible attitude toward business meets the long-term interest of both FALCON and its shareholders, while material information is always timely disclosed to investors and shareholders to maintain high transparency.

FALCON believes sound corporate governance is the cornerstone of effective business development to provide high quality products and services while optimizing shareholders’ return on investment. Therefore, a board meeting on May 07, 2021 passed a resolution to establish a Corporate Governance Director position pursuant to Article 23 of the Operation Directions for Compliance with the Establishment of Board of Directors by TWSE Listed Companies and the Board’s Exercise of Powers, i.e., the director shall have been in a managerial position for at least three years in a securities, financial, or futures related institution or a public company handling legal affairs, compliance, internal audit, financial affairs, stock affairs, or corporate governance affairs.

The current Director of Corporate Governance in our company is Vice President Chen Shien. With over three years of experience in overseeing corporate governance matters in publicly traded companies, he meets the statutory qualifications for the role of Corporate Governance Director.

The Corporate Governance Director is responsible for board meeting and shareholders meeting arrangements, preparation of board meeting and shareholders meeting minutes, assistance in ongoing education and training for directors of the board, provision of information required for performance of duties by directors of the board, assistance in directors of the board’s compliance with law as well as other matters as prescribed in the Articles of Incorporation of FALCON and/or contracts to help strengthen board performance and corporate governance effectiveness.

2023 Corporate Governance Implementation Status

  1. Board meeting and relevant committee meeting arrangements to facilitate meeting proceedings and strengthen recusal for conflicts of interest.
  2. Provision of information required for performance of duties by directors of the board within the statutory time period to remind them of relevant laws and regulations to be complied with to perform their duties when the board makes a resolution and afterward, and follow through of the progress of how directors’ opinions or suggestions are processed after a meeting.
  3. Amendments to important company bylaws including the Articles of Incorporation, Corporate Governance Best Practice Principles, and Regulations Governing Board Performance Evaluation.
  4. Arrangement of education and training for directors of the board based on company business characteristics, and provision on a regular basis of information on relevant external education and training opportunities to help enable diversified learning mechanisms.
  5. Provision of information required for performance of duties by directors of the board to help streamline their communication with individual business heads, and assistance in independent directors’ communication with the Chief Audit Executive and CPAs to help independent directors effectively perform their duties.
  6. Arrangement of evaluation of board performance and individual function committees’ performance.