According to Article 20, Section 4 of our company’s “Corporate Governance Best Practice Principles,” in order to achieve the ideal goal of corporate governance, the overall capabilities that the board of directors should possess are as follows:

1. Operational judgment capability.
2. Accounting and financial analysis capability.
3. Management capability.
4. Crisis management capability.
5. Industry knowledge.
6. International market perspective.
7. Leadership capability.
8. Decision-making capability.

To ensure that the board of directors achieves the above objectives and enhances efficiency, our company has established a policy of diversified board composition. According to Article 20, Section 3 of the “Corporate Governance Best Practice Principles,” the composition of the board of directors should consider diversification and formulate appropriate diversification policies based on its own operations, business types, and development needs. This should include, but not limited to, the following two major aspects of criteria:

1. Basic conditions and values: Gender, age, nationality, and culture.
2. Professional knowledge and skills: Professional backgrounds (such as legal, accounting, industry, finance, marketing, or technology), professional skills, and industry experience.

Our board of directors consists of 7 directors with different professional backgrounds. The current composition of the Board of Directors is 4 directors (57.1%) and 3 independent directors (42.9%), including 1 female director (14.3%); two directors (28.6%, less than one-third of all directors) are employees/managers; independent directors have tenure for 3-6 years. For the ages of the directors, 1 is 41~50 years old; 4 are 61~ 70 years old, and 2 are 71~ 80 years old. In addition, the members of the Board of Directors are composed of professionals with diverse backgrounds, sufficient professional knowledge, experience and outstanding insight, and high ethical standards. The Company attaches great importance to the independence of Directors. In addition to increasing the number of Independent Directors, it also judges and evaluates the independence of Independent Directors in accordance with relevant regulations. Therefore, all Directors of Accton are equipped with extensive experience in the industry, high academic prestige, with outstanding performance in other professional fields.