Broadridge Financial Solutions, Inc. (NYSE:BR), the global fintech leader, and Taiwan Depository & Clearing Corporation (TDCC) are pleased to announce that the Taiwan Stock Market has achieved 100 percent e-voting for shareholder meetings.
This milestone brings with it increased transparency for annual general meetings (AGM) for shareholders in Taiwan and enhanced corporate governance.
Demi Derem, who spearheads Broadridge’s international efforts for its investor communication solutions, commented, “We are proud to have worked with TDCC to help transition the Taiwan Stock Market to 100percent e-voting in less than four years. The adoption of Broadridge’s direct vote submission service enabled the Taiwan Stock Market to replace manual processing of shareholder voting with straight-through processing (STP) via electronic file. STP enables a standardized and automated cross-border voting process that ensures smooth, accurate and cost-effective execution for custodian banks.”
Achieving 100 percent e-voting follows an August 2014 agreement between Broadridge and TDCC to establish direct links between Broadridge’s global proxy service and the Taiwan bourse’s then newly adopted electronic voting system, StockVote. This link brought the benefits of StockVote to foreign shareholders voting in Taiwan for global custodians and their institutional investor clients. Prior to this development, voting in Taiwan was handled primarily by local banks and often required locally registered shareholders to physically attend meetings, a stipulation that complicated participation by overseas shareholders.
Sherman Lin, Chairman and CEO of TDCC, commented: “TDCC has been continuously developing services that enhance active ownership, and promoting e-voting and the stewardship code among institutional investors in Taiwan. As a result, wider participation of institutional investors has been achieved, and the shareholders’ meetings have become more effective and efficient with respect to voting by poll as well as a nomination system for candidates of directors and supervisors. All of these services have contributed to better corporate governance in Taiwan.”
According to a 2017 report from TDCC, the StockVote solution has had a positive impact on both shareholder meetings and shareholder voting patterns in Taiwan. This includes higher efficiency by reducing the duration of shareholder meetings, increasing the incidence of voting participation among local and offshore shareholders and enhanced corporate governance based on the positive correlation between companies that have adopted e-voting and higher corporate governance ratings.
According to Derem, Broadridge has seen increased interest from central clearing houses globally in STP for electronic shareholder voting. Broadridge provides governance solutions in approximately 100 markets, processing 80 percent of outstanding shares in the United States and over 50 percent of public companies and mutual funds globally.