Corporate Governance

Advanced Semiconductor Engineering, Inc.("ASE Inc.") is committed to maintaining high standards of ethics, corporate governance and effective accountability mechanisms in every aspect of its business. Since its establishment, ASE Inc. pursued a consistent policy to improve its corporate governance in line with Taiwan, US and international best practices. In its goal to achieve transparency to shareholder and enhancements in shareholder value, over the past decades, ASE Inc. strengthens the accountability of its executive management, and adopts a governance structure that foster effective decision-making while appropriate monitoring of both compliance and performance. ASE Inc. comply with, inter alia, the applicable ROC corporate governance rules, the US Sarbanes-Oxley Act, other US securities laws and related regulations (including applicable stock exchange rules).

ASE Inc.’s board of directors (the “Board”) sets up the compensation committee to facilitate the operation of the Board. Meanwhile, ASE Inc. has an internal audit department which is responsible for periodically presenting compliance audit results. Such audit results will be finally reviewed by the Board.

Board of Directors

As the highest governing body, the Board consists of twelve members. Two of the members of the Board are female.

The board of directors has certain powers and duties, including devising operations strategy, proposing to distribute dividends or make up losses, proposing to increase or decrease capital, reviewing material internal rules and contracts, hiring and discharging the general manager, establishing and dissolving branch offices, reviewing budgets and financial statements and other duties and powers granted by or in accordance with the ROC Company Law and Advanced Semiconductor Engineering, Inc. ("ASE") Articles of Incorporation or shareholders resolutions.