A solid and sound corporate governance system is the fundamental building block to a successful enterprise. Lotus fully values the importance of effective corporate governance and implements a corporate governance system in accordance to Taiwanese relevant laws. We act upon the principles of operational transparency and respect for shareholder rights to ensure the Board of Directors to supervise the Company effectively and efficiently.
In order to establish a comprehensive corporate governance system, the Lotus Board delegates various responsibilities and authorities to functional Committees, consisting of independent directors and professional experts. In addition, Lotus sets up an information disclosure system to provide timely relevant information to shareholders via its website or MOPS.
The Remuneration Committee assists the Board of Directors in reviewing Lotus’s overall compensation and benefits policies and programs as well as in evaluation and compensation of Lotus’s Directors and management team.
According to Lotus’s Remuneration Committee Charter, the Committee shall consist of no less than three members, including independent directors of the Board, and meets at least twice a year.
The Audit Committee assists the Board in carrying out its oversight responsibilities of the quality and integrity of the accounting, auditing, reporting and financial control practices of the Company.
According to Lotus’s Audit Committee Charter, the Committee shall consist of all independent directors with no less than three members in total. The Committee meets at least once every quarter and is authorized to retain and oversee legal, accounting, or other consultants as it deems appropriate to fulfill its mandate.
Lotus’s Internal Audit is an independent unit that directly reports to the Board of Directors. The Company’s Internal Audit reviews the internal controls in the Company’s processes and evaluates the adequacy, effectiveness, and efficiency of these controls compared to the actual functions on day-to-day basis.
Internal Audits are conducted according to the annual audit plan, which is based on risk assessment results and approved by the Board of Directors. Deficiencies identified by Internal Audit and recommendations for improvements are included in the audit reports and are regularly reported to the Board of Directors and Audit Committee.