buzzer manufacturer

Current Status

1.	The company builds up the completed accounting system and the internal auditing system to regulate various internal operational flows. The company also establishes several regulations to set a basis for the requirement and disposal of company assets, the endorsement, the loan debt activities and short term and long term investments. To manage the business operations better, the company sets up the trading operational procedures, the shareholders meeting rules and the board of directors meeting rules. The election of directors and supervisors are clearly stated as well. In the aspect of internal controlling, the company organizes the internal auditing system and qualified internal auditors to audit periodically and check randomly. It benefits to the company in keeping the daily operational flows on tracks and noticing any possible problem in the early stage for further investigation and problem solving.

2.	The company calls for the board of directors meeting each season and it also holds for any emergency matters. The attendance for the board meeting is good.

3.	All information about the financial data, business and management matters is disclosed on the MOPS TSE. The company website also introduces its products and business contents. Furthermore the company representative deals with the shareholders' suggestions or investment related issues to make shareholders fully informed of major announcements.

4.	Mr. Chen and Mr. Lin from Dinkum & Co., CAPs are the responsible auditors and reporting accountants with no relationships to the company. Thus registered accountants should be able to audit independently, evaluate periodically and provide any improving suggestions simultaneously.

5.	J-li law firm is the legal adviser to the company to provide appropriate legal counseling and assist the board and the managements to upgrade the basic legal knowledge as to prevent any law-breaking matters and keep the company operating legally and properly.

6.	According to the Operating Procedure for Reviewing the Over-the-Counter Listing of Securities, 2 independent directors and 2 independent supervisors are elected on the board meeting on June 8, 2006. The independent directors, same as other directors, should be informed for any significant subjects determined by the board. The company would inform independent directors within the legal required period and supply sufficient information to allow any opinions and suggestions.

7.	According to Training Encouragement Principles for Directors and Supervisors of Public Offering Company, the directors and supervisors of the company are required to attend the courses and obtained the qualified certificates so as to enhance the professional capability and legal knowledge.

Role of Independent Directors and Supervisors

　　Independent directors make great achievements on the strategic aspect and have objective evaluations for the management performance. In addition, independent board members and supervisors act especially on the corporate business management supervision and shareholder interest protection. They help to improve the corporate governance structure, increase the management efficiency, enhance the balance scheme, protect investors' interests, strengthen the professional operations and upgrade the strategic science of the board.

　　Relative to non-independent directors and supervisors, independent directors and supervisors stand more objectively on providing value-added suggestions for determining corporate strategies as well as to promote the company conformity to governance rules. As a result, while in electing qualified independent directors and supervisors, the company fully consider not only the independency but also the education and experience backgrounds of the independent directors and supervisors in hopes of the fully utilization of their functionality.