Taiwanese CSD launches initiative to bring greater transparency into the proxy process

CSD looks to help issuers prepare their shareholder meetings and improve corporate governance with complimentary reports in light of growing ESG popularity.

By Jonathan Watkins

The Taiwan Depository & Clearing Corporation (TDCC) has launched a new service to provide corporate issuers listed on the nation’s exchanges with complimentary proxy recommendations, in a move which it claims is a ‘world first’.

Issuers listed on Taiwan Stock Exchange (TWSE) and Taipei Stock Exchange (TPEX) will receive the recommendations published by governance solutions provider Glass Lewis.

The move is aimed at helping issuers to prepare their shareholder meetings and improve corporate governance 

“We are seeing a sustained increase in demand for meaningful and actionable governance research across the Asia Pacific region,” said Stanley Soosur, country head Australia at Glass Lewis. “Our strategic partnership with TDDC will ensure that companies listed on these exchanges have a detailed understanding of the global proxy voting polices leveraged by our 1,300+ institutional clients – many of whom invest directly via TWSE and TPEX. With a strong global focus on ESG issues, it has never been more important for companies to understand how investors vote.”

The launch is a continuation of the CSD’s focus on environmental social and governance (ESG) solutions. In 2020, TDCC launched Taiwan ESG Dashboard, a consolidated and public platform displaying rating published by major ESG rating agencies.  

TDCC said “hundreds of corporate issuers have relied on the dashboard to access and monitor ratings of Taiwanese corporate issuers.”

“Taiwan commits to enhancing transparency of proxy recommendations, which would benefit both companies and investors”, said TDCC chairman Sherman Lin. “Now Taiwan is the first market in the world where the central securities depository helps ensure that companies have timely access to Glass Lewis’ Proxy Paper research reports.”