Broadridge to cooperate with TDCC’s new StockVote system
Broadridge Financial Solutions is to establish direct links with the Taiwan Depository & Clearing Corporation’s (TDCC) new electronic voting system for Taiwanese shareholder meetings, StockVote.
For listed companies that elect to use the StockVote system, direct voting into the system by Broadridge will enhance the level of straight-through processing (STP) in the process, improving voting deadlines for overseas investors and helping to eliminate multiple manual processes undertaken by local sub-custodian banks.
StockVote was developed by TDCC to take advantage of recent regulatory changes in Taiwan that allow electronic voting, and the system has been used successfully by local investors for several years.
By working with TDCC, Broadridge will bring the benefits of StockVote to foreign shareholders voting in Taiwan through Broadridge's global proxy service for global custodians and their institutional investor clients.
Currently, voting in Taiwan is predominately handled manually by local banks, often including mandatory meeting attendance. With the cooperation of the sub-custodians and global custodians, Broadridge will send overseas voting directly to StockVote through secure electronic means, thereby eliminating the manual handling of paper voting and meeting attendance by the local banks for participating Taiwanese issuers.
Sherman Lin, president of TDCC, says: "We have listened to the concerns of investors about shareholder voting in Taiwan, and have worked with our regulators to update local regulations to enable improvements to the process. We are pleased that the necessary regulatory changes are for the most part now complete, and local investors have been able to benefit from the improved process. We see working with Broadridge to bring these benefits to overseas investors as a critical next step to further improving corporate governance in Taiwan."
"As interest in cross-border proxy voting and corporate governance has grown in the last few years, Broadridge has worked with local parties wherever possible to improve the local processes and the ability of our clients to vote. While Taiwan has required our clients to deploy manual processes for many years given the regulatory environment and market practices, the development of StockVote by TDCC and the possibilities raised by our cooperation with them promise to bring significant benefits to our overseas clients in their efforts to support improved corporate governance globally," says Demi Derem, general manager of Broadridge's global proxy service. "We look forward to working with the TDCC to bring the combined benefits of StockVote and our global proxy service to our clients."
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