Corporate Governance

TXC's Internal Audit function is an independent unit that reports directly to the Board of Directors.   In addition to reporting at regular Board of Directors meetings, the company's audit reports to the chairman of the board and the audit committee regularly or irregularly.

The company has an internal control and audit system implementation manual to review the effectiveness of internal control of the company's operating procedures. The scope of the review covers all departments, procedures and subsidiaries of the company.

The majority of the audit work is executed according to an annual plan, which needs to be approved by the Board of Directors. Such plan will take into account risks that have been identified. Special audits or reviews are conducted as needed. The combination of the regular audits and the special projects provide management with objective assurance and insight on the functioning of the internal control system; it gives management an additional channel to learn about existing or possible future weaknesses in the system, which allows management to address them in a timely manner.

The company supplements the review activities by Internal Audit with documented self-assessments by the departments and all subsidiaries. Internal Audit sees to it that these activities do take place, and reviews the submissions to ensure the quality of the process; it consolidates the results of the self-assessments for the Board Audit Committee and the Board of Directors.

The company complies with Article 3 of the Corporate Governance Code of Practice. The appointment and dismissal of the audit manager is approved by the board of directors. The appointment, dismissal, evaluation, and salary remuneration of internal auditors are based on the "Recruitment and Appointment Management Measures", "Salary Management Measures", and "Performance Evaluation Management Measures". ", "Employee Resignation (Retention without Pay) Management Measures". The above-mentioned appointment and removal, evaluation, salary and remuneration shall be signed and reported by the audit supervisor to the chairman of the board for approval according to the approval process. The above-mentioned relevant measures are disclosed in the company's internal regulations area.