The structure of Shiny Chemical’s Board of Directors was established with reference to “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies.” Three out of the nine directors are independent directors to ensure diversity and independence of corporate governance. The selection of independent directors must comply with “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies.”

The term of office for each term of independent directors is three years. Their main duties are setting course for the Company’s operation and business, investing and re-investing strategies, reviewing budgets, and the appointment and discharge of managerial officers. A meeting shall be convened at least once every three months.

Respecting the rights of the shareholders and stakeholders, the Company set up the Remuneration Committee in 2013 to enhance the function of the Board of Directors, and implement effective reviews and management of remuneration.

Six Board of Directors Meetings and two Remuneration Committee meetings were convened in 2014. Discussion items and the attendance of directors and committee members are listed in the Company’s 2014 Annual Report of Shareholders’ Meeting.

The Company set up the Remuneration Committee to promote fairness and interest-sharing, linking all of the Company’s members’ pay and performance, while assisting the Board of Directors with the implementation and assessment of overall corporate payroll and benefits policies, as well as the remuneration of directors and managerial officers. Through a fair pay and performance system, the Company can create higher corporate values.

The Committee consists of three members, one of them being the convener, representing the Committee and heading meetings. Main duties of the Committee include 1) prescribing and periodically reviewing the policies, systems, standards, and structures for performance evaluation and remuneration for directors and managerial officers, 2) periodically evaluating and prescribing the remuneration of directors and managerial officers.

The Committee shall not produce an incentive for the directors or managerial officers to engage in activity to pursue remuneration exceeding the risks that the company may tolerate. The Committee shall implement a salary remuneration system that is competitive and encouraging in nature to attract and retain talents, and continue to improve performance of business operations. With respect to the performance assessments and remuneration of directors and managerial personnel of the Company, the Committee shall refer to the typical pay levels adopted by peer companies, and take into consideration the reasonableness of the correlation between remuneration and individual performance, the Company's business performance, and future risk exposure. The Committee shall provide clear specifications when determining the ratio of bonus payout for directors and managerial officers and the time for payment of the variable part of remuneration.

To meet the expectations of investors and stakeholders, in the 2014 Board of Directors Meeting, Shiny Chemical passed “Principles of Integrity Management” and “Code of Ethical Conduct” for the implementation of honest corporate operations.

“Principles of Integrity Management” stipulate that in all business conducts, the Company’s directors, managerial officers, and all employed staff shall not receive improper benefits of any form, engage in unlawful and dishonest behaviors. The Principles prohibit giving and receiving bribery, providing illegal political contributions, improper charitable donations or activities, improper giving and receiving of gifts or hospitality, etc. The Principles also specify that directors, supervisory units, and managerial officers shall avoid conflicts of interest, and establish a comprehensive internal-control system for dishonest behaviors and business activities with high potential risks.

Ethical behaviors of the Company’s directors, managerial officers, and all employed staff at work are specified in the “Code of Ethical Conduct,” which covers the avoidance of conflicts of interest, improper channeling of profits, prohibiting seeking self-interests, implementing corporate governance, customer information confidentiality, fair trade, honest reporting of trades, proper use and maintenance of company assets, etc.

“Corporate Social Responsibility Best Practice Principles” stipulates that social ethics as well as the rights and interest of stakeholders should be respected. While companies pursue sustainable operation and profits, environmental, social, and corporate governance issues shall be considered. No violation of these principles (e.g. corruption) was reported in 2015.

Shiny Chemical follows “Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies” and other relevant regulations in terms of corporate governance and operations. We have a complete set of standards for internal corporate governance, while actively engaging in domestic and foreign initiatives and participating in all kinds of public associations, making sure we are on par with trends of corporate governance.

Climate change and GHG reduction have received a great deal of attention in the international community and the government. Shiny Chemical has been continually inspecting its GHG emissions since 2004, complying with government policies. To increase GHG inspection accuracy in conformation with international standards, in 2011 we adopted the ISO 14064-1 system to assess and support GHG reduction, and it was approved by the Bureau of Standards, Metrology and Inspection in 2012.

We continue to test and verify our quality and environment management at home and abroad to help control product safety and environmental risks. In addition, we follow EU’s regulatory requirements for chemicals, RoHS/REACH, as well as domestic standards for the purpose of providing our customers the best possible and safe products.