Page 42 - 2016 TGI CSR 電子書

long-term performance objectives for the directors

and managers and their remuneration policy, system,
standards and structures and the performances of the
directors and managers. The committee will propose
the remuneration for each director and manager for
TGI’s reference in policymaking.

*Note：Please visit TGI’s official website for the organizational procedures and duties of
the Audit Committee and Remuneration Committee.

Internal Audit Department

The Internal Audit Department IAD) of TG is an independent unit under the board of directors.
IAD has a suitable number of eligible auditors who, in addition to regular presentations during the
board meetings, report to the chairman, supervisors and independent directors on a regular basis or
when necessary. This company has its own Internal Audit Implementation Rules, based on which the

IDA reviews and assesses the company’s internal control system, business performance and efficiency.
The IDA then offers timely suggestions for improvement to ensure that the internal control system
is implemented continuously and effectively. Its scope of audit covers all operations of this company
and our subsidiaries. The IAD mainly conducts audits based on the audit plan passed by the board
of directors. The audit plan is based on recognized risks. The IAD also conducts audit on a case-by-
case base when necessary. The aforementioned general and case-by-case audit help the company’s
management keep track of the internal control functions and understand existing flaws or potential
risks in time. The internal audit reviews the self-inspections of all units and subsidiaries. The self-
inspection results, the internal control flaws and any matters that need improvement discovered by

the IAD will be reported to the chairman and the Board of Directors as a reference in the evaluation of
the internal control system’s effectiveness and the foundation of Management’s Reports on Internal
Control.

2.4 Honest Business

"Honest Business" is always TGI’s core principle and the company’s promise and responsibility to
our stakeholders. TGI’s Board of Directors and management have, in various public occasions, vowed

to run an honest business. TGI did not commit any major violations nor face any major fines in 2016.

Avoidance of Conflict of Interest
TGI’s rules of procedures for meetings of its Board of Directors include clauses for avoidance

of conflict of interest for directors. If any director or a juristic person represented by a director is
40 an interested party with respect to any agenda item, the director may express his/her opinions and
answer questions at the respective meeting. When the relationship is likely to prejudice the interests
of the company, the director may not participate in discussion or voting on that agenda item, and