PRINCIPLES OF GOOD CORPORATE GOVERNANCE

As for the consequence of an implementation on this issue over the past three years (2007-2009), though the
Company had campaigned to have shareholders know their rights in the matter, it appeared that no shareholders had ever
nominated a new director for appointment as a Board member or proposed any significant issues that should be put on the
agenda of the Company’s shareholders’ annual meeting.
2.3 The Use of Insider Information
This has been reported in the section on “Control Over the Use of Insider Information” in “The Management”.
3. The Section on Stakeholders’ Rights
The Company is fully cognizant of its stakeholders’ rights and believes that the stakeholders’ support benefits the
Company’s good reputation and ability to compete in the market, as well as helping to build up the Company’s profit in the long
term. Hence the Company realizes its responsibilities for each stakeholder group that has a different perspective, and has
therefore adopted the following practices with the principles of morality and integrity to insure that their rights are always respected:
Shareholders
The Company is determined to be a good representative of shareholders by taking
good care of their benefits and providing them with the greatest satisfaction through
high and continuous remuneration. Likewise, all reliable insurance-related business
information will be disseminated to them accurately, completely and transparently
in conformity with generally accepted standards.
Employees
The Company will treat its employees at all levels equally on the basis of moral and
fairness principles in order to encourage them to work efficiently. All employees are
also consistently urged and trained to develop their skills and knowledge necessary
to the successful implementation of their work, as well as the generation of the utmost
satisfaction for customers. In this respect, various training programmes are offered in
conformity with the Company’s business transaction strategies in order to upgrade
the employees’ ability to carry out their jobs professionally. The programmes organized are,
for instance, insurance training, development of quality management system, human
resources management, development of working efficiency, etc. Besides, all levels
of employees are encouraged to study or seek new branches of knowledge via the
Company’s scholarships and support on conferences with leading domestic and foreign
institutions. Similarly, different patterns of learning are created to enable all employees
to learn by themselves, which will finally lead to the Company’s knowledge-based
culture. The policy on development of the company’s employees, including a budget
spent in 2009, is revealed in the annual report presentation form (Form 56-1) under
the item “Policy on Employees’ Development”. Apart from fair remuneration, all other
welfare schemes are, of course, higher than the requirements of the Ministry of Labour,
i.e. providence fund scheme, life and health insurance coverage, 5s and relaxation
programs, as well as the maintenance of a good working atmosphere and the protection
of employees’ health and safety.
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