Note 2-9

(9) For example, an "enterprise with committees", as authorized under the revised Commercial Code that took effect on April 1, 2003, is expected to enhance governance in the corporate management manner that it chooses. A large or deemed large enterprise as provided in the special commercial law is now allowed to establish articles of association to have the nomination, auditing and benefit committees at its board of directors and operating officers instead of auditors (Sections 5 to 39, Article 21, Commercial Code). Outside directors account for a majority of each committee's members.