In order to ensure shareholder services units’ neutrality, protect shareholders’ rights and interests, and stabilize securities market order, the authorities mandated TDCC to organize the evaluation system for shareholder services units’ operation at the press conference on July 9th, 2020. Only the units that pass the evaluation could continue their shareholder services operation. Since receiving the authority’s mandate, TDCC had invited representatives from Taiwan Stock Affairs Association and shareholder services units to discuss the matter many times. At these meetings, TDCC explained the evaluation items, declaration and review procedure, assigned scores and weightings; the company also had participants exchanging their opinions. After receiving the opinions from meeting participants and reporting to the authorities, TDCC again started intensive meetings with representatives from Taiwan Stock Affairs Association and shareholder services units in January 2021 to reach a consensus on the evaluation operation.

On March 2nd, 2021, the authorities released the amended Article 3-5 of Regulations Governing the Administration of Shareholder Services of Public Companies, which served as the legal basis for evaluating shareholder services units’ operation and was in effect as of January 1st, 2022. TDCC was designated by the authorities as the organization to process the evaluation and stipulate “Working Guidelines for Evaluating Shareholder Services Units’ Operation.” After the guidelines were approved by the authorities, they served as the basis of the evaluation operation.

In addition, to eliminate concerns from employees of shareholder services units about the evaluation system’s impact on their rights to work, TDCC immediately launched many orientations after the authorities announced the regulation amendment. The company emphasized that shareholder services evaluation will be conducted every three years, and the evaluated organizations included companies handling their own shareholder services and shareholder services agents. The evaluation criteria included management system, legal compliance, and accuracy of business execution. The aim of the evaluation is to ensure the neutrality of shareholder service units, protect shareholders’ rights and interests, and the company had dispel employees’ dismay timely through orientations.

In compliance with the regulations, the evaluated units were obligated to complete the declaration and submit the self-evaluation forms by the end of January 2022. By then, a total of 92 shareholder services units had completed the declaration. Referring to the declared materials, TDCC therefore reviewed the inspection, verification, and supervision records during the evaluation period. The company also collected the records of lawsuits and penalties from the authorities to evaluate whether a shareholder services unit had caused impacts that were material and harmful to shareholders’ rights and interests. It is estimated that the evaluation result will be submitted to the authorities by the end of March 2022. TDCC will then establish files for supervision based on the evaluation results and continue tracking the shareholder services unit’s operation. This can serve as the reference for validity of qualification during the evaluation period and the evaluation for the following evaluation year.