Board of Directors

1. PCSC formulate candidates nomination system in The Articles of Incorporation of President Chain Store Corporation. PCSC actively implement good corporate governance in accordance with structure of the Board of Directors, diversity, requirement of professional knowledge and capabilities formulated in the Procedures for Election of Directors and the Corporate Governance Best Practice Principles.

2. According to Corporate Governance Best Practice Principles, the structure of the Board of Directors should consider its business scale, the shareholdings of its major shareholders and practical operational needs. And the composition of the board of directors shall be determined by taking diversity into consideration. All members of the board shall have the knowledge, skills, and experience necessary to perform their duties in terms of the ability to make operational judgments, perform accounting and financial analysis, conduct management administration, conduct crisis management, knowledge of the industry, an international market perspective, ability to lead and make policy decisions. So PCSC expect to achieve an ideal target of corporate governance.

3. Successors of the board should possess the knowledge, skill, and experience aforementioned. If there are appropriated candidates within our Group, PCSC will not only arrange them into the board to familiar to the operation of the board and the Group, but also strengthen their experiences through job rotation. Our Group also have abundant talent pools for the candidates of board of directors. The composition of the board of directors shall also be determined by taking diversity into consideration, including the number of directors who are also managers of the Company shall not exceed one-third of the number of directors, focusing on gender equality, and the knowledge, skills, and experience necessary to perform their duties.

4. Except for the external education, our Group conduct training courses twice a year for the board of directors and management teams in order to strengthen their knowledge of operational strategies and professional skills. The training courses are related to operation, marketing, M&A, regulatory compliance, industrial trend, and etc.

5. PCSC formulate the Rules for Performance Evaluation of Board of Directors. It can be confirmed the efficiency of the board operation and the performance of the board by performance evaluation which include mastery of the Company goals and tasks, awareness of duties, participation in the Company operations, internal relationship management and communication, professional competence and continuing education, internal control, and opinion expression. The results will be used as reference for elections or nominations of Director positions.

6. The evaluation aforementioned is implemented annually. The result will be reported to the board for review, suggestion and improvement and it will be disclosed on the Company’s website or annual report.

Key management team

1. The company's human resources department has established a talent development system for key management level, regularly checks and reviews potential talents every year, and draws up a development plan in practice.

2. Talent review of key positions: There are at least 2 candidates would be submitted for each key position for cultivation. And the maturity of the succession will be noted into two categories: immediate to within one year and one to three years.

3. Learn from the work: Through the establishment of deputy supervisor positions, potential talents take charge of higher-level positions’ work to cultivate higher vision and decision-making ability.

4. Job rotation plan: The key management level needs to have cross-functional experience in key positions in order to be observed their cross-functional adaptability, effectiveness and leadership potential.

5. The education programs for key management level: