Shareholder Issues

Q & A

Q1: Purpose of set the salary remuneration committee for?

In order to improve the remuneration system for the directors and managers of the Company, in accordance with the provisions of Articles 14-6 of the Securities Exchange Act, the remuneration committee shall be set up in which companies have been listed on the stock exchange or traded on the securities business premises. Listed, OTC and Emerging Stock Companies are required to set the remuneration committee.

Q2: The operating mechanism of remuneration of the Commission?
A2: 1.

The remuneration committee to assist the Board in assessing and executing the Company's overall remuneration and advising on the performance evaluation to the directors and managers of the Company, the members of the Committee must be professional and independent. It is also necessary to establish the relevant mechanism to prevent the leakage of the company's business secrets (such as the signing of confidentiality agreements, etc.).


Article 8 of the Remuneration Committee's terms of reference provides that the remuneration committee shall, if necessary, require the directors and relevant departmental managers to attend the meeting and provide the relevant necessary information; and in order for the remuneration committee to have sufficient resources. Article 11 of the Remuneration Committee's terms of reference provides that the remuneration committee may appoint a lawyer or accountant and other professional personnel to provide advice or for the purpose of checking and paying the expenses by the company.

Q3: How is the company selecting members of remuneration committee?

The members of the Remuneration Committee of the Company are appointed by the Board of Directors pursuant to Article 5 of the Articles of Association of the Company's Remuneration Committee. The professional qualifications and independence of the members shall be in accordance with the provisions of Article 5 and Article 6 of the Remuneration Committee's terms of reference.

Q4: What is the Code of goodwill practice? How does the company comply with integrity?

On December 22, 2010, the Board of Directors approved the implementation of the Code of goodwill practice of the Company and submitted it to the shareholders' meeting on 22, June 2011. The Code prohibits bribery, provides illegal political contributions, improper charitable donations or sponsorships, unreasonable gifts, services, hospitality or other unusual benefits.
Adoption measures:
(1) Express the integrity of the business situation of the policy in the company's rules and external documents.
(2) Development of prevention programs, including operating procedures, behavioral guidelines and education and training, audit room supervision and implementation by the Human Resources Department, and regularly reported to the Board.
(3) Establish and follow an effective accounting system and internal control system.
(4) Provide proper prosecution of the pipeline and clearly violate the integrity of the provisions of the disciplinary and appeals system.

Q5: PVC products are gradually banned in the advanced countries, what is the company’s future transformation of long-term planning?

Although facing the advanced countries gradually demand banned or reduced and China and other low-cost competitive prices, under the substantial economic growth in China, India, Russia and Brazil and other countries, the global demand for PVC products are still growing, the development of high value-added PVC products, environmentally friendly PVC products and non-PVC plastic products is our efforts, in order to meet the direction of the global environmental trends under the pursuit of the company's sustainable business. We had successfully developed environmentally friendly products such as TOP soft rubber and Non-P PVC tape, high value-added products such as optical components and impact-resistant tube and so on. We believe the companywill be able to reduce the impact of external environment, enhance operational performance.

Q6: What is the implementation of the company's internal control?

According to the Regulations Governing Establishment of Internal Control Systems by Public Companies promulgated (the "Act") by Financial Supervisory Commission (FSC), CGPC formulated an internal control system as the basis for operational management and internal audit. According to the Act, Internal Audit prepares an annual audit plan based on the results of the risk assessment and approved by the Board Audit Committee and the Board of Directors. In the end of each year, Internal Audit reviews the self-assessment reports prepared by all departments and subsidiaries; and evaluates the overall efficacy of all internal control systems and produces Internal Control System Statements for the Board Audit Committee and the Board of Directors.

Q7: Is the internal control statement adopted by the board of directors available to those shareholders?

The statement of internal control is mainly to explain to shareholders the design and implementation of the Company's internal control system, which will be effective for a certain period of time. And to ensure that the financial statements issued by the Company are reliable and comply with the relevant laws and regulations issued by the Government.

Q8: When should a limited liability company call a shareholders' regular meeting?

It shall call the meeting within 6 months upon the conclusion of each fiscal year, provided that this shall not apply where it has acquired the competent authority's approval with just causes.

Q9: Can the proxy be any one other than a shareholder?

The proxy can be any one other than a shareholder, provided that such proxy shall not accept the appointment of more than three shareholders at the same time.

Q10: It is impossible for me to claim the souvenir, because I live outside Taipei City. Whether you can send it to me via post?

The souvenir can be claimed only at the designated location and the place where the shareholders' meeting is held.

If there is any questions other than the above, please link to Contact Us, [Topic : Stockholder]. It is our pleasure to render service in due course.