Goldkey

CSR

Foreword
Governance
Social Engagement

Foreword

Goldkey is committed to social responsibilities, and the Corporate Social Responsibility Committee has been set up; responsible for implementation of institutions, management approaches, goals, and specific promotion plans regarding corporate social responsibility, based on the principles of "Corporate Governance", "Sustainable Development", and "Social Welfare Maintenance".

Another role of this Committee is looking into the benefits of stakeholders, identifying stakeholders of the Company, understanding reasonable expectations and needs of Goldkey’s stakeholders via communication and adequate responding to corporate social responsibility issues raised.

Whilst profitability and sustainable business operations are paramount, Goldkey perpetually considers the environment, society and corporate governance. The company factors these into its corporate management approach and operations to promoting economic, environmental and social progress in order to achieve the sustainable development objectives.

Governance

Goldkey actively promotes corporate governance, in addition to established internal control system in accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies”. The board of directors and management regulates the supervision of units responsible for audits and the audit implementation.

Explanations regarding the status of implementation of corporate governance for this Company are respectively specified in four categories required by the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”: protecting rights and interests of shareholders, strengthening the powers of the board of directors and utilizing the functions of the independent directors, fulfilling the function of supervisors.

Protecting rights and interests of shareholders

1. Shareholders are encouraged to participate in Corporate Governance.

In accordance with the law, Goldkey enforces “Shareholders’ meeting procedure rules”, “Regulations Governing the Acquisition and Disposal of Assets”, “Regulations Governing Loaning of Funds” and “Regulations Governing Making of Endorsements/Guarantees”, all of which are implemented by resolution of the shareholders’ meeting. Minutes of the shareholders’ meeting are publicly disseminated.

2. Governance relationship between Goldkey and its affiliates

Goldkey has set “Regulations governing the supervision and management of subsidiaries” and “Regulations governing related party transactions”, in-accordance to which transactions between Goldkey and its affiliates are adhered to. In addition, any non-compete restrictions for the directors shall also be explained at shareholders’ meeting(s).

Goldkey has set perpetual regulations to, and monitors, the list of major shareholders (holding more than 5% of issued shares or top ten shareholders) and regularly disclose information of the shareholdings, equity pledge and changes of shareholders holding over 10% of shares.

Strengthening the powers of the board of directors and utilizing the functions of the independent directors

1.Goldkey’s directors, including independent directors, convene meetings at least once per quarter.

2.Goldkey’s remuneration committee regularly assesses the remuneration paid to directors, supervisors and managers, and submits to the board of directors for discussion and resolution.

3.Issues such as budget, amendments to the Articles of Incorporation, internal audit mechanism amendments, transaction concerning significant financial loans, endorsement and guarantee and derivatives, investments in other enterprises and significant financial resolutions, are submitted to Goldkey’s Audit Committee for resolutions. Goldkey carefully evaluates such so to enhancing Goldkey’s performance and risk management, thereby achieving the oversight function on behalf of the shareholders.

4.Goldkey has established an audit unit under the board of directors to formulate audit plans and prepare audit reports. Before the end of each year, the audit plan will be submitted to the board of directors’ meeting for resolution and the monthly audit reports will be sent to the independent directors for approval before the end of the following month.

Enhancing information transparency

Apart from the establishment of a reporting system in accordance with relevant regulations and rules of the Taiwan stock exchange, Goldkey values the rights-to-know of the shareholders. Following public-list, Goldkey regularly disclose financial information and information of business affairs in accordance with rules and regulations of the competent authority and publish material information.

Respecting the rights and interests of stakeholders

Goldkey is committed to safeguarding the legitimate rights and interests of its stakeholders such as the balance of interest between its employees, shareholders, customers and suppliers and maintaining an open channel of communication, whilst safeguarding their legitimate rights and interests as follow.

1. Employee:

Internal meetings are frequently held with sharing of all current status and plans of future development to inter-department, and to fostering teamwork amongst the staff whilst cultivating a sense of belonging.

2. Shareholders:

Goldkey fully discloses material information, including relevant information disclosed in the annual financial reports and the annual reports to safeguard the basic rights of all the shareholders.

All of the above completes corporate governance of Goldkey, and all of which enables the company to maximizing benefits and perpetually maintain goals of corporate governance.

We periodically participate in charitable events annually. Integrating with our immediate surroundings, caring for society, just to name a few whilst pursuing company growth. Positive change and sustainability begins with each of us. More information can be found in the Taiwanese language of our corporate website