The Board of Directors is the highest governance body of the Company, responsible for its management, supervision, and decision-making. The Board's responsibilities include but not limited to: increase or reduction of capital of the Company; regulations with regard to the organization of the Company; establishment, amendment, and abolishment of the branch offices within or outside the territory of the Republic of China; examination of annual business budgets and final closing report; distribution of profits or off-set of deficit; the amount and term of domestic and foreign loan; the amount of Investment; issuance of corporate bonds; policies regarding personnel matters, material purchase, accounting, and internal control; amendment and modifications of regulations of organization of the Board of Directors and the functional committee; amendment and modification of regulations with regard to the scope of duties of independent directors; appointment and removal of the management; appointment and removal of the chiefs of finance, accounting and internal audit; policies regarding recommendation of chairman and president to subsidiaries; other duties and powers granted by the law or by shareholders' meeting.

To strengthen corporate governance and promote sound development, the Board of Directors of the Company has approved the enactment of the 'Code of Corporate Governance.' As per article 20 of the Code, the composition of the Board members shall be considered in a diversified manner, and the appropriate policy on diversity should be based on the Company's business operations, operating dynamics and development needs.

The Company has set a concrete objective for Board Diversity:

• Maintain at least one female director and aim to have over one-third female directors by 2025.
• Ensure that at least one director possesses professional backgrounds and skills in each of the following areas: telecommunications industry, business management, information and communication technology, fintech, audit and risk management, marketing /commerce, and accounting/finance.

Please refer to the document for details on the Company's Implementation of Board Diversity.

According to the Corporate Governance Evaluation Indicator of Taiwan Stock Exchange (TWSE), the actual attendance rate of all directors at board meetings in the evaluated year must be at least 85%. To comply with this requirement, and to emphasize the importance of achieving a board of directors' average attendance rate of 85% or above, the Company has included the same indicator in its Regulations Governing the Performance Evaluation of the Board of Directors. To achieve the target attendance rate of 85%, board meetings may be attended in person or via video conference, as stated in Article 205 of the Company Act. Additionally, the attendance rate of each director at board meetings shall be considered one of the key factors for evaluating and nominating board members for re-election. In 2024, the Company held a total of eight meetings, and the average attendance rate of all directors was 99.3%.

Please refer to the document on Board Meeting Attendance for more information.

The Company complies with Article 4 of Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies that none of directors serve as an independent director of more than three other public companies.

Please refer to the document on Board Mandates.

The Company has approved its Regulations Governing the Performance Evaluation of the Board of Directors at the 2nd meeting of the 9th term Board of Directors on August 13th, 2019.

The Company undergoes an external evaluation conducted by an independent professional institution or a panel of external experts and scholars at least once every three years. In 2024, the Company engaged the Taiwan Corporate Governance Association for the external evaluation. Additionally, an internal self-evaluation was conducted, covering the Board as a whole, individual directors, and functional committees.

Please refer to the document on the complete 2024 evaluation report for more information about the Company's Board Performance.

The Company has established the Directors Election Regulations, which stipulate that the director election process shall follow the candidate nomination system under Article 192-1 of the Company Act. Independent and non-independent directors are elected concurrently, but their votes are calculated separately.

As per Article 195 of the Company Act and Article 13 of the Company's Articles of Incorporation, directors serve a three-year term and are eligible for re-election. According to the Company’s Code of Corporate Governance, the composition of the Board members shall be considered in a diversified manner. To be eligible for election, directors must possess the necessary knowledge, skills, and experience to perform their duties. Additionally, all independent directors must meet professional qualification requirements, have relevant work experience, maintain their independence, and not have any direct or indirect interest relationship with the Company, in compliance with the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies.

The Board of Directors and shareholders holding over 1% of the total issued shares are authorized to nominate candidates for directors through formal written communication. At the Annual General Meeting, shareholders shall elect directors from among the nominees listed in the roster of candidates.

The Company's Board will have one chairman who is elected by and from among the directors. The chairman will serve as the internal chair of the Board of Directors and represent the Company externally.

The Company follows the provisions of the domestic Company Act, which stipulates that the term of office for directors is three years. In addition, to ensure that independent directors can objectively perform their duties and maintain their independence, the Taiwan Stock Exchange Corporate Governance Evaluation has set an index stating that more than half of the independent directors should not serve continuously for more than three terms. Based on these regulations, the composition of the Company's tenth Board of Directors, which was elected in May 2022, includes five newly appointed directors and eight re-appointed directors.

Having a combination of both new and incumbent directors on the Board of Directors ensures that experienced and knowledgeable directors are available to guide new directors and provide valuable insight into the Company’s operations and future. This is based on their understanding of the Company’s history, policies, and objectives, and helps ensure continuity in decision-making, thus sustaining the Company's operations. Additionally, new directors bring fresh perspectives and ideas that promote innovation and adaptation to the changing market and industry, contributing to the overall success and sustainability of the Company. A diverse mix of directors can also lead to more balanced and informed decision-making. By including new directors, the Board can also plan for succession and maintain a smooth transition, promoting stability and continuity in the Company's leadership.

In May 2023 and September 2024, the Company experienced two changes in chairmanship. Additionally, between July 2023 and September 2024, several juristic person directors were dismissed or resigned, with new directors subsequently appointed to take over their positions. As of December 2024, the average tenure of the Company’s directors was four years.

Please refer to the table below for the Percentage Distribution of Director Tenures.

All the Directors of Chunghwa Telecomm were nominated by the Board of Directors and shareholders with shares of statutory percentage before election in the shareholders’ meetings. To tie the Directors’ performance with the corporate vision for sustainability and the short, mid-, and long-term strategic targets, assess the required core competencies, strengthen accountability, link performances with compensation, retain and attract key talents to the Board of Directors, the Compensation Committee flexibly incorporates the sustainable management strategic targets in the indicators for Directors’ compensation disbursement to tie it with the variable compensation in accordance with regulations like the Articles of Incorporation so as to materially drive the performance and achieve a win-win scenario.

Director Compensation Disclosure

The directors of Chunghwa Telecom are highly supportive of the company’s efforts to enhance and strengthen corporate governance. Each director has agreed to disclose their individual compensation to enhance the transparency of compensation information. This initiative is intended to give our shareholders greater confidence in the sustainable development of our company. Effective starting from 2024, the compensation details will be disclosed in the Annual Report and the Annual General Meeting Handbook.

* Compensation of Directors: p.38-43 of the Annual Report 2023.

The Company has appointed the Chief Corporate Governance Officer, who is concurrently acting as the Assistant Vice President of Legal Affairs Department, and the Secretariat of BOD with Finance Department to be the special units to promote corporate governance related matters respectively.

The continuing education of the Chief Corporate Governance Officer has amounted to 30 hours in 2024, which has exceeded the minimum requirement of 12 hours of training course in the following year of her first appointment.

For details, please see the Chief Corporate Governance Officer and its implementation.