Operation of the Board of Directors

FocalTech believes that the key factor for an enterprise to operate in a sustainable manner is to maintain a sound governance system by its board of directors. Therefore, FocalTech is committed to building a sound and effective corporate governance framework, continuously improving the quality of corporate governance, and practicing the spirit of corporate governance, in order to ensure that the management team and colleagues in each unit comply with laws and regulations and ethical standards. All of these measures enable the Company to strengthen its overall operations, protect the rights and interests of stakeholders, and fulfill its corporate social responsibility.

Article 20 (Competencies of the Board of Directors as a whole) of the Corporate Governance Best Practice Principles stipulates that the composition of the Board of Directors shall take into consideration gender equality, and the board members shall generally have the knowledge, skills and competencies necessary to perform their duties. To achieve the ideal goal of corporate governance, the Board of Directors shall possess the following abilities:

• Our company employs a candidate nomination system for its directors. Nominees are nominated by shareholders and the board of directors, with suitable candidates being consulted from multiple sources. Shareholders then elect the board members at the shareholders' meeting.
• Our company has formulated "Self-Assessment or Peer Assessment Procedures for the Board of Directors" and "Director Remuneration Management Procedures." These performance evaluations ensure active participation by directors and effective operation of the board, serving as a reference for future director selection.
• The 2023 board elections will recognize directors with diverse backgrounds, including professionals from various industries and academia. These directors possess experience operating world-class companies, including one female director.
• To align with the goal of board diversity, the future objective is to have at least one female director, or a director with a background in accounting, finance, or law.
• Our company established an independent audit committee in 2013 to conduct its work from a neutral and independent perspective, contributing to sound corporate governance. The 2023 board elections will select four independent directors to form the audit committee.
• Each director will complete at least 6 hours of training by 2025; this has been the goal of the Company every year/every director since 2015.