Board Member Succession Plan and Implementation Status

Board Member Succession Plan and Implementation Status

  1.   The company’s directors are nominated and selected based on Article 17 of the “Articles of Incorporation.” Each term lasts 3 years, and the performance assessment results of the board members every year are used as a reference for selecting or nominating directors before the process is carried out in accordance with the “Procedures for Election of Directors.”
  6.     The structure of KNH's Board of Directors and the number of directors must be adjusted based on the company's business development scale and the shareholdings of major shareholders, as well as needs during business operations.

    To improve the structure of the Company's Board of Directors and to continue to provide a continuous effective, collaborative and diverse Board of Directors, Article 20 of the Company's Corporate Governance Best-Practice Principles sets forth the competencies (including basic qualifications and values, professional knowledge and capabilities) a Board member should possess. Moreover, an appropriate diversity policy should also be formulated according to its operations, business pattern and development needs. A policy is advised to include, but not be limited to, building a database for director candidates based on the following standards for ongoing director succession planning:

  1. (1) Integrity, responsibility, innovation and decision-making capabilities.
  2. (2) Professional knowledge and skills that are on par with the Company's core values and beneficial to the
  3.      Company's business management.
  4. (3) Experience in the industry associated with the business of the Company.
  5. (4) At least 1 female director.
  6. (5) The competencies of the Board of Directors as a whole should include business management ability,
  7.      decision-making and leadership ability, industrial technology and manufacturing, accounting and finance,
  8.      and marketing.

(6) The list of director candidates must meet qualification review and related regulations. This ensures that

     when there is a vacancy for a director or a plan for additional directors, new director candidates can be

     effectively identified and selected.

  6.     Furthermore, to encourage KNH's directors to continue enhancing their skills, the company has arranged for at least 6 hours of director refresher courses to endow them with new knowledge and keep up with the latest trends. The courses also serve to help them familiarize themselves with their roles, functions, responsibilities, and obligations in the Board of Directors, so as to materialize the corporate governance system effectively and optimize the Board of Directors on an ongoing basis, and thereby achieve sustainable corporate developments.

    3. The implementation status for 2021:
  14. (1) By-election of one independent director.
  15. (2) There are currently two senior executives involved in the operation of the Board of Directors.
  16. (3) For status on the diverse operation of the Board of Directors, please refer to the “Board Member
  17.      Diversification Policy” on KNH's official website.
  18. (4) The company regularly organizes education and training courses necessary for the board members to
  19.      make informed management decisions, and we encourage our board members to participate in at least 6
  20.      hours of refresher course annually. This year, the board members engaged in 66 hours of refresher course
  21.      encompassing themes such as corporate governance, corporate crisis trends, risk forecast, corporate
  22.      management practices, etc.

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