LCY CSR Concept

LCY GROUP is committed to using resources more efficiently, delivering value for our customers and stakeholders, providing solutions to customers’ needs and enhancing the quality of life for all people through research and development of green chemical products and investment in renewable energy technologies to inject new energy in sustainable development.



Governance Integrity

LCY GROUP understands the importance of operational transparency and corporate governance. Thus, the organization structure of the corporation is set and executed according to the Company Act, Securities and Exchange Act, and other relevant laws and regulations. Under this structure, we continue to enhance our management performance, protect the rights of investors and other stakeholders.



Board of Directors

The Board of Directors is responsible for the supervision, appointment, and guidance of management; it is also responsible for the overall corporate operation. Furthermore, the Board of Directors ensures a well-rounded supervision mechanism and strengthens managerial capacity in an effort to maximize shareholder equity.

We have 7 seats on the Board of Directors, all elected by shareholders. Among the 7 directors, 2 are independent directors, 1 is female corporate director from Wai Lih Company Limited. In addition, there are two supervisors on the board. Mr. Bowei Lee, the chairperson of the Board of Directors, is also the CEO of LCY CHEMICAL CORP. In 2013, seven board meetings were held.

Remunerations to directors are paid according to Article 27 of the LCY Articles of Incorporation, where directors and supervisors are awarded 1.5% of the annual pre-tax net income, signifying that remuneration benefits of the Board are in positive correlation with annual earnings. However, according to Article 30 of the LCY Articles of Incorporation, remuneration to directors and supervisors shall not exceed 0.5% of the surplus, so that most of the earnings can be distributed to shareholders.



The Structure of Board of Directors






Remuneration Committee

To enhance corporate governance and to keep in line with international standards, we established a Remuneration Committee in 2011. The Committee assists the Board of Directors in reviewing corporate payroll structure, the performance and salary compensation of directors and managerial officer, and employee benefit policy and programs. The reviews serve as an important basis to attract, encourage, and maintain talented employees, in hopes of maximizing benefits for our shareholders.

The main responsibilities of Remuneration Committee are:

1. Establish and regularly review the performance evaluation and remuneration policy, system, standards, and structure of directors, supervisors and managerial officers.

2. Regularly evaluate and formulate salary compensation of directors, supervisors, and managerial officers, and propose issues for discussion by the Board of Directors. Corporate officers under the supervision of Remuneration Committee refer to managerial officers provided the Securities and Exchange Act. The Remuneration Committee comprises 3 members. To ensure the independence of the Remuneration Committee, members are appointed pursuant to Article 6 of the Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Stock Exchange or Traded Over the Counter.



Financial Information Disclosure and Investor Relations

The financial information of LCY CHEMICAL CORP. is published on the company website (http://www.lcygroup.com) to provide complete, up-to-date, and fair disclosure of financial information and corporate governance to the public. Stakeholders can download annual reports, financial reports, financial information, corporate governance rules, and stock price and dividend information from company website. All information regarding our operation status and financial figures are complete, up-to-date, and transparent.

Shareholders can also contact us by telephone or email. In addition to answering questions in detail, we also respond to all suggestions made at the shareholder’s meetings. We make announcements on Taiwan Stock Exchange in a timely manner and our efforts are recognized by the ranking of Class A in information disclosure by the Securities & Futures Institute in 2010.

Other than financial information, strategies for corporate sustainable development and potential risks and opportunities in business operations have become the focus of major institutional investors around the world in recent years. LCY GROUP has always been cognizant of communicating with our investors; therefore we use the Dow Jones Sustainability Index to evaluate the performance of LCY GROUP While identifying our shortcomings, we make efforts in improving these shortcomings and seek sustainable development to safeguard the long-term investment value of our shareholders.

We provide convenient channels of communication for our shareholders and stakeholders. We have also established the spokesperson system and created a web forum for investors to provide feedbacks, so that communication and advice could be offered. The mechanisms for shareholders or employees to make suggestions or give advice on business directions are: (1) shareholders can voice their opinions through shareholder’s meetings, company website or spokesperson; and (2) employees can communicate and propose their ideas through established internal mechanisms.

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