Taipei--All companies listed on the local main board have been instructed by the Taiwan Stock Exchange (TWSE) to hold investor conferences at least once a year from 2018, in a bid to strengthen the transparency of their operations.
The TWSE, which operates the local main board, said that it has revised the Taiwan Stock Exchange Corporation Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities, as the previously effective rules, which had asked listed companies to convene an investor conference at least once every three years, expired at the end of 2016.
The TWSE said that the change to tighten the rules came as the exchange took into account the existing requirements in which high-tech firms, including biotech companies, listed on the main board, have to hold an investor conference at least once a year.
In addition, the existing rules also require companies from all sectors that have launched their listings since 2015 to hold investor conferences at least once a year. The TWSE said that the new rules will conform to market expectations of an improvement in corporate information disclosures in the broader market.
The TWSE said that the requirements for all listed companies to hold at least one investor conference a year refer to meetings held by the company on its own or meetings held by institutional investors but attended by the company.
As of the end of February, a total of 894 companies were listed on the local main board, according to the TWSE.
The move to revise the rules on information disclosure is in line with international standards, the TWSE said.
In addition, investor conferences will serve as a cost-effective way for investors and potential investors to get informed of a listed company's operations, the TWSE said.
In investors conferences, listed companies will be able to brief attendees about their fundamentals and give guidance about the outlook of their industries, while the management of listed companies will also be able to tell investors the value of the companies and the management's strategies on how to run their companies, the TWSE said.
The TWSE said that exchanges through such meetings are expected to improve the quality of corporate governance and eventually protect shareholders' equity.
It said that listed companies have obligations to disclose information to their shareholders, while listed companies should maintain sound communication channels with their shareholders.
Transparent communications provided by listed companies are expected to help them raise funds from the capital market, since sufficient information will increase listed companies' trustworthiness among investors.
The TWSE said that to help listed companies have a better understanding about how to hold effective investor conferences, the exchange will call a series of meetings in Taipei, Kaohsiung and Taichung March 22-28.
Source: Focus Taiwan News Channel