Sustainable Management

Corporate Governance Structure and Committee

THSRC firmly believes that thought-out, transparent, and efficient corporate governance is the foundation for pursuing steady development, continuously improving operational safety and sustainable performance, and further creating sustainable value. The Company complies with domestic laws and regulations to establish the "Corporate Governance Guidelines," and has established the Board of Directors and various functional committees under it to optimize the overall governance effectiveness of the Company through various management mechanisms.

THSRC has established a "Corporate Governance Promotion Committee" to promote relevant issues through its corporate governance planning team, sustainable development team, and ethical management team. The main issues discussed in 2022 covered the implementation status of human rights management, corporate governance, sustainable development, ethical management, information security management and system, legal compliance, and risk management. Additionally, the committee presented reports on investor relations enhancement plans and strategic planning for material corporate governance matters. For more information on the responsibilities of the "Corporate Governance Promotion Committee" and its operations in 2022, please refer to “Corporate Governance Structure.”

THSRC makes efforts to promoting corporate governance systems and measures and has been ranked among the top 5% of listed companies in the "Corporate Governance Evaluation" for five consecutive years. In the future, THSRC will continue to execute its corporate governance framework, actively implement communication with stakeholders, and practice rigorous corporate governance strategies. For further information related to corporate governance, please refer to the “ Corporate Governance Structure” and THSRC's annual reports, corporate website and the Market Observation Post System (MOPS).

Corporate Governance Structure

Responsibilities of the Board of Directors and Information on Board Members

The Board of Directors serves as THSRC's highest governing body. Its main power and responsibilities include the power conferred by relevant laws and regulations, and the shareholders' meeting, reviewing significant regulations, business plans, budgets, financial statements, and important business, as well as supervising management execution results and guiding the management team. THSRC strives for board diversity which include industrial, academic, and legal professional backgrounds. Currently, there are 13 directors (including 4 independent directors) on the Board, of which male directors accounted for 85% (11 persons) and female ones accounted for 15% (2 persons). The age distribution is as follows:

Functional Committees

FIn order to effectively perform the competencies of the Board of Directors and elevate the caliber of its decisions, functional committees have been set up under THSRC's Board of Directors, including the "Corporate Governance & Nomination Committee," "Audit Committee," "Remuneration Committee," and "Special Committee." These committees aid the Board of Directors in fulfilling its supervisory and advisory duties by organizing meetings to execute the responsibilities mandated by regulations, deliberating pertinent matters, and presenting conclusions and recommendations to the Board of Directors for resolution. Please refer to the table below for the description of each functional committee's responsibilities and the issues discussed in 2022. For further information on operations, please refer to “Operations of Functional Committees.”

Industry Exchange

Taiwan High Speed Rail Corporation (THSRC) has been actively responding to international industry trends through technical visits, international observation, and industry academia cooperation, and has continued to refine the technology of the rail industry. Among them, THSRC has been a member of 21 associations (refer to Appendix Table 1), maintaining close cooperative relationships with domestic and foreign rail industry group and promoting its development. Since THSRC joined the International Union of Railways (UIC) as a member in 2009, it has been exchanging experiences with railroad systems or operating organizations around the world by co-organizing seminars. THSRC continues to participate in the International High-Speed Rail Association (IHRA) as a member and actively supports the seminars and forums held by the association. In October 2022, THSRC was invited to be a panelist at the annual forum of the International High Speed Rail Association (IHRA) in Japan, and shared Taiwan's sustainable development with the global railway transportation industry.

THSRC Industry Associations Participation in 2022