In addition to abiding by the Four Postal Acts and their Sub-laws, Chunghwa Post has also established an integrity system for the directors and employees to improve the management of the Company. Chunghwa Post also fully implements the Legal Compliance system, with one Chief Compliance Officer (CCO) in charge of comprehensive regulatory compliance and legal affairs.
Corporate Governance Structure
To expand the application of information and data, Chunghwa Post established the Big Data Preparatory Office on July 8, 2021, which is in charge of the promotion of data application of all business units. In response to the increasing important application of information digitalization, the Cyber Security Office was set up on July 13 in the same year, responsible for the maintenance of information security and the normal operation of the personal information protection system as well as the coordination of the information security promotion and personal information protection solutions. On July 28 of the same year, the Digital Development Committee was established to promote data and digital technology development, strengthen the functions of formulating and reviewing strategies for data and digital technology development.
Corporate Governance Framework of Chunghwa Post Co., Ltd.
As prescribed in the Chunghwa Post Co., Ltd. Establishment Act, the Company shall have a board of directors composed of 11 to 15 directors. One-fifth of the directors shall be experts in their fields and one-fifth shall be labor representatives assigned by the union. In addition, there shall be three to five supervisors. According to the Articles of Association, the term of the office of directors and supervisors is 3 years. The current term of the 7th session of the board of directors is from July 1, 2021 to June 30, 2024. The board of directors has set up the Risk Management Committee convened by the chairman every two months, and the committee members include the president, vice president or management of equivalent level, Chief Risk Officer, and supervisors of relevant units. An extraordinary meeting may be convened if necessary. The Company has set the Digital Development Committee, which is composed of the chairman (as the convener), president (as the deputy convener), corporate governance supervisor, vice president (or management of equivalent level) supervising the digital development promotion team, executive secretary, Chief Digital Officer, and Director of Department of Information Management. This committee is convened every quarter, and an extraordinary meeting may be convened if necessary.
2022 Chunghwa Post Annual Report
Gender ratio & Age distribution of board members
Evaluation of the Board of Directors
Chunghwa Post is a state-owned enterprise affiliated to the MOTC. To strengthen the selection, management, and assessment of the positions of directors and supervisors appointed by MOTC to its affiliated organizations and businesses, the Regulations for the Selection, Management and Assessment of Representatives of Privately-owned Enterprises and Consortium Legal Entities of MOTC affiliated organizations and businesses have been set up. Except for the directors appointed by the labor union, the annual evaluation of the other directors of the Company is conducted in accordance with the above-mentioned regulations, and the evaluation results serve as an important reference for continued appointment. In accordance with Article 40-1 of the Corporate Governance Best Practice Principles for Insurance Companies and its appendix, Chunghwa Post conducted annual evaluation of the board of directors and established assessment items of the Annual Board Performance Evaluation Form”, which include “Attendance of board meetings”, “Understanding prior to and participating in the discussion of proposals during the board meetings”, “Interaction with the management team", “Compliance with laws and regulations and the Code of Practice”, “Improvement of corporate governance”, “Continuously taking courses in relation to corporate governance”, “Understanding of the company, the management team, and the industry the company belongs to”, “Other directors’ understanding prior to and participating in the discussion of proposals during the board meetings”, “Other directors’ interaction with the management team”, “The operation of the board of directors and the functional committees”, “Other directors’ compliance with laws and regulations and the Code of Practice”, “Other directors’ understanding of the functions and roles of the board of directors”, “Whether other directors give full play to their powers and functions”, “Whether other directors actively improve corporate governance”, and “Other directors’ understanding of the company, the management team, and the industry the company belongs to”. In 2022, the results of the self-evaluation and peer-evaluation were 95.33 points and 94.91 points respectively (out of 100), and the assessment items all reached the “Excellent” level (above 90 points) stipulated in the Corporate Governance Best Practice Principles for Insurance Companies.
Continuing Education for Directors and Supervisors in 2022
The continuing education for directors and supervisors in 2022 included the five material topics, namely Information Security, Principle for Financial Service Industries to Treat Clients Fairly, Postal Life Insurance Business Aligning with IFRS 17 Insurance Contracts, Anti-money Laundering and Combating Terrorism, and TCFD (climate-related financial disclosure). The total number of training hours has reached the statutory 108 hours required by the competent agency, and the actual training hours amounted to 330 hours.