After the implementation of this amendment, a company will be able to increase operational flexibility by amending its articles of incorporation, including:

Shareholders’ meetings may be held via videoconference.

The number of directors of a company limited by shares may be less than three seats.

A company of one government or corporate shareholder may have no supervisor.

A resolution of the board of directors can be adopted by writing.

The surplus earning distribution or loss off-setting may be made every quarter or every six months.

The employee reward mechanism of a company may apply to the employees of its holding companies and/or subordinate companies.

A company may issue special shares involving multiple voting right or veto power over specific matters, the power to ensure someone being elected as a director, and the power to restrict or prohibit someone from being elected as a director or supervisor.

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In addition, with respect to the new system for reporting the names of the responsible person and major shareholders of a company as required by Article 22-1 of the Company Act, the platform for reporting, https://ctp.tdcc.com.tw, will be open for registration and reporting starting November 1, 2018. We recommend visiting the website to understand relevant procedures in advance.

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Should you have any questions regarding this amendment to the Company Act, please do not hesitate to contact us.

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Best regards,

Formosan Brothers, Attorneys-at-Law.

[Contact Information]

Chiu-Hua Chen

E：chchen@mail.fblaw.com.tw

LiPu Lee

E: lipolee@mail.fblaw.com.tw

Teresa Y.C. Pan

E：teresa@mail.fblaw.com.tw

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