Directors' Capabilities and Diversity

The Chapter 3 "Strengthening the Functions of the Board of Directors" of the "Corporate Governance Principles" the company formulated stipulates that the composition of the Board of the company should take into account the diversity, and possess in general the necessary knowledge, skills and qualities to perform their duties. In order to achieve the ideal goal of corporate governance, the Board of Directors as a whole should have operational judgment, accounting and financial analysis, business management, crisis management, leadership decision-making ability, industry knowledge, and international market outlook.

The current Board of the company consists of 11 Directors, including 3 Independent Directors, one of which is female. The Board members have extensive experiences and expertise in the fields of chemicals and chemical engineer industry operation, law, accounting and so on, and meet the requirements of the Corporate Governance Principles. The implementation of the diversification goals is as follows. Each Board member understands and agrees with the company's business philosophy, grasps the industry status of the company, and at the same time, has been seansoned in international political and economic situations, legal compliance, as well as management in international business and manufacturing operation. In response to the ever-changing international competitiveness in management environment and the updating of laws and regulations (such as corprate governance), the company focuses on equipping its Board members with required ability to keep pace with the times by programming and providing relevant exclusive courses, in addition to the adopted nomination system for the nomination and selection of Board members, evaluating the information of each member's academic and career experiences to ensure the diversity, independence and the opinions of stakeholders are taken into account, in compliance with the "Election Rules of Board of Directors" and the "Corporate Governance Principles."

The management objectives of the diversity of the Board of Directors of the company include:

(1) Each Board member has at least four professional backgrounds (including operational judgment, management, finance & accounting, commerce & economics, crisis management, industry knowledge, petrochemical industry experience, international market outlook, leadership decision-making, etc.)
(2) Independent Directors shall acount for more than 20% of the seats, and with tenure lasting no more than three terms.