Below are key takeaways from ISS’ recently released 2025 Taiwan Proxy Season Review. The full report is available to institutional subscribers by logging into ProxyExchange then selecting the Knowledge Center and its Library tab and to corporate subscribers by logging into Compass then selecting Governance and the Governance Library or Governance Exchange tab.
- Strengthening of sustainability disclosures: Starting in 2026, listed companies in Taiwan will be required to disclose sustainability-related financial information in accordance with the IFRS Sustainability Disclosure Standards. The Financial Supervisory Commission (FSC) provides phased implementation, transitional guidance, and support to enhance transparency, comparability, and investor confidence.
- Increasing female representation on boards: By 2025, the FSC’s gender diversity initiatives are expected to have driven a significant shift in board composition. Ninety-two percent of core companies covered by ISS now include at least one female director, reflecting the effectiveness of regulatory initiatives in advancing gender balance at the board level.
- Rising board independence: Increased independence is attributed to reinforced regulatory requirements, as the standards governing independent directors have become increasingly stringent, with higher minimum requirements for board composition and stricter limits on director tenure. Ongoing regulatory reforms are expected to accelerate the rise in board independence, thereby aligning Taiwan’s governance standards more closely with global best practices.
- Shifting to size-based disclosure standards for material transactions: Taiwan’s Financial Supervisory Commission has revised disclosure requirements for Taiwan’s large listed companies, transitioning from fixed monetary thresholds to size-based standards. This change eases compliance while ensuring that only material transactions remain subject to reporting.
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By:
Ada Lu, Harry Liu, Harry Sun, Mengzhen Zhang, Yuan Yao, Elodie Zeng, Rui Ning Cheng, Xiao Xie, Leah Wang, Carol Qi
