PART I (6) Each of these directors are legal representatives of the MOTC. The dividend distributions will be paid  directly to the MOTC because such dividend distributions are not the individual income of these directors.  We do not have any service contracts with any directors providing for any benefits upon termination of  employment.  As of March 31, 2011, we had 13 directors and three supervisors elected in June 2010 for three-year terms.  Pursuant to the R.O.C. Company Law, the directors may be removed from office at any time by a resolution  adopted by a resolution at a stockholders’ meeting. The chairman of our board of directors is elected by our  directors. Our chairman presides at all meetings of our board of directors and also has the authority to act as our  representative. We have not entered into any contract with any of our directors and supervisors by which our  directors or supervisors are expected to receive benefits upon termination of their employment.  Our articles of incorporation provide for a board of directors consisting of seven to fifteen members.  Pursuant to the R.O.C. Securities and Exchange Act, as amended in January 2006, the R.O.C. Financial  Supervisory Commission on May 28, 2006 published a rule requiring listed non-financial-institution companies  with paid-in capital exceeding NT$50 billion to appoint independent directors to serve on their board of directors  in accordance with the Act. The term “independent director” may have a different meaning when used in  Taiwan than in other jurisdictions. The number of independent directors shall be not less than one-fifth of the  total number of directors and not less than two in number. Pursuant to both the R.O.C. Company Law and the  R.O.C. Securities and Exchange Act, Article 12 Clause 1 of our article of incorporation provides for the election  of, starting from the fifth stockholders’ meeting, at least three independent directors out of the 7-to-15-member  board. We have used a nominating process, with the stockholders choosing the independent directors from the  list of nominees. Accordingly, we have elected three independent directors in the annual general meeting on  June 18, 2010. With respect to certain material decisions to be made by our company as specified in the R.O.C.  Securities and Exchange Act, including the adoption or amendment to our internal control system, material loans  or guarantees, the issuance of equity-type securities, matters in which directors and supervisors have personal  interests, the appointment and discharge of auditors, approval of financial reports, the appointment and discharge  of financial, accounting or internal auditing officers and other matters prescribed by the R.O.C. Financial  Supervisory Commission, the dissenting opinion or qualified opinion of an independent director is required to be  noted in the minutes of the board of directors’ meeting.  95 C. Board Practices  (1) Our juridical supervisor.  (2) The dividend distributions will be paid directly to the legal entity that the respective supervisor represents  because such dividend distributions are not the individual income of these supervisors. Supervisors Total Compensation  Fixed Income Dividends  Business Expenses  (in NT$) Shwu-Fen Chao 61,355  59,355  — (2) 2,000  I-Hwa Wu 61,467  51,467  (2) 10,000  Su-Ghen Huang 6,903  4,903  — (2) 2,000  Shu-Chen Chen 82,419  82,419  (2) — Yung-An Yen 48,533  44,533  — (2) 4,000  Ming-Shyan Yang 91,355  91,355  (2) — National Development Fund, Executive Yuan (1) 7,186,212  — 7,186,212  (2) — Chunghwa Post Co., Ltd.  (1) 3,593,106  — 3,593,106  (2) — Total Compensation Senior Management Below NT$2,000,000 none NT$2,000,000 to NT$4,999,999 Shu Yeh, Joseph C.P. Shieh, Min-Hsuan Lin, Feng-yue  Hung NT$5,000,000 to NT$9,999,999 Yen-Sung Lee, Jen-Hon Lin, Chi-Mao Hsieh, Tzong-Yen  Chang, Tzu-Han Huang, Hsiu-Gu Huang, Mu-Piao Shih,  Tai-Feng Leng, Shyang-Yih Chen, Yuan-Kuang Tu, Iee- Ray Wei Total 15 people