Letter To Shareholders - Mitac

3.3.3 Enforcement of Corporate Governance Implemented by the Company and Reasons for Differences
Items Status Differentiation with other publicly-traded companies and why
1. The company’s equity structure and
shareholder rights
(1) The company’s approach to handling
shareholder’s recommendations or
disputes.
(2) Information held on the identities of
major shareholders and their ultimate
controlling person.
(3) The establishment of risk control
mechanism and firewalls with affiliate.
2. Constitution of the Board of directors
and their responsibilities
(1) The election of independent directors.
(2) The regular evaluation by the
independent CPA.
3. The situation to build the communication
with stakeholders
(1) The company has a spokesperson to handle shareholder’s
recommendations, questions, and disputes.
(2) The company controls the list of major shareholders and the
people who control them. And by the “Securities and
Exchange Law”, the company reports the number of shares
held by the directors, supervisors, and major shareholders.
(3) The company has a strong internal control and has been
executing it. Besides the implementation of self checks, the
Board and the management review the audit reports and the
No substantial differences.
results of self check regularly and irregularly in order to put
the internal control system into practice. With the auditing
system, we comply with the requirement of the complete
finances, sales, and accounting for a public firm and we
reinforce the regulation and the management of affiliates to
lower the operation risks. Our relationship with affiliates is
fair and reasonable. All procedures for financial and sales
activities with affiliates follow the written regulations.
(1) The company does not have independent supervisors. But all (1) MiTAC has not yet reached the standard to have an independent
directors execute by law, the company charter, and Director according to the Securities and Exchange Law or Letter
shareholders’ meeting agreements.
of (95) FSC rule No.0950001616.
(2) The company evaluates the CPA’s independency annually and (2) When an independent director becomes necessary, the company
considers the need to replace a new CPA every five years. All will follow the “Corporate Governance Best-Practice Principles
CPAs are appointed by the Board and have no common for TSEC/GTSM Listed Companies” and relevant law.
interests with the company. Additionally, all appointed CPAs
are from professional and independent CPA firm in Taiwan.
Parties whose interests are affected by the actions of the company can
contact the company through MiTAC spokesperson or his/her proxy
at any time. The hotlines are: 886-3-396-2888 / 886-2-2652-5888,
email: stock@mic.com.tw /justine@mic.com.tw。
Fits the operation and concept of the “Corporate governance
practices for publicly listed companies” and relevant law.
(CONTINUED)
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