The Financial Supervisory Commission (“FSC”) issued a press release on January 15, 2013 declaring that in order to protect the shareholders' rights and interests and to enhance the efficacy of a company’s business operation, it is contemplating on designing a scope of mandatory establishment of the audit committees. FSC will publish the draft regulation soon for the public’s comments. According to the press release, FSC is considering requiring mandatory establishment of the audit committee if a company belongs to the designated industry or meets certain capital amount requirement. With respect to the industry, financial holding companies, banks, bills companies, insurance companies whose shares are regulated by the Securities Exchange Act, or integrated securities companies which are listed on the stock exchange or are subsidiaries of financial holding companies, are all required to set up an audit committee to replace its supervisors. As for the capital threshold, a listed company whose paid-in capital exceeds NTD 50 billion which are not financial institutions shall follow the same requirement. However, a financial company which is one hundred percent held by a financial holding company may, at the option of its parent financial holding company, set up an audit committee or appoint supervisors. FSC also indicated that the requirement of establishing the audit committee will apply after the expiration of the terms of office of the current directors or supervisors. For a company in which the term of office of its directors and supervisors ends in 2013, the requirement will not apply until the terms of office of the newly-elected directors or supervisors expire.