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FSC says no to labor representation in corporate boardrooms

FSC says no to labor representation in corporate boardrooms

Taipei, June 7 (CNA) The Financial Supervisory Commission (FSC) on Sunday said it does not support a proposal to amend the Securities and Exchange Act to allow at least one labor representative to sit on the board of directors of publicly traded companies. The FSC said the proposal contradicts the Company Act, which stipulates that companies' boards of directors are to be elected by shareholders. Furthermore, the interests of workers are already being safeguarded under the current Securities and Exchange Act, which requires companies to include compensation and audit committees and independent directors on their boards, the FSC said. The motion was proposed by opposition Democratic Progressive Party lawmaker Hsu Chih-chieh (???), who said that labor representation in the boardroom will help workers to negotiate more favorable compensation and working conditions. The FSC, however, expressed support for another amendment to the Securities and Exchange Act aimed at regulating the sale of securities that gives its bearer voting rights, such as real estate investment trust (REITS). The FSC supported that proposed amendment on grounds that large-scale transactions of such instruments may disrupt the market. On Monday, the FSC is scheduled to update the Legislature on recent progress towards improving internal food safety controls in publicly traded companies. (By Wu Ching-chun and Ted Chen)


Updated : 2021-09-21 01:45 GMT+08:00