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The Board Diversity and Independence

Yang Ming has established “Corporate Governance Best Practice Principles” containing the board diversity policy. The board diversity and independence is disclosed in annual report and on Yang Ming’s official website.

The Board Diversity

● The Board Diversity Policy
   The board of Yang Ming should direct company strategies, supervise the management, and be responsible to Yang Ming and the shareholders. The
   various procedures and arrangements of Yang Ming’s corporate governance system shall ensure the board of directors complies with laws, regulations,
   Yang Ming’s articles of incorporation, and the resolutions of Yang Ming’s shareholders meetings while exercising their authority.

   The structure of Yang Ming's board of directors shall be determined by choosing an appropriate number of board members, between 7 to 15, in
   consideration of Yang Ming’s business scale, the shareholdings of Yang Ming’s major shareholders, and practical operational needs.

   The composition of the board of directors shall be determined by considering diversity. It is advisable that directors concurrently serving as company
   officers not exceed one-third of the total number of the board members, and that an appropriate policy on diversity based on Yang Ming's business
   operations, operating dynamics, and development needs be formulated and include, without being limited to, the following two general standards:
   1. Basic composition and values: gender, age, race or ethnicity, nationality and culture.
   2. Professional knowledge and skills: professional background (such as law, accounting, industry, finance, marketing or technology), professional skills and
       industrial experience…etc.

   Board members should possess the knowledge, skills, and experiences necessary for performing their duties. To achieve the ideal goal of corporate
   governance, the board of directors shall possess the following abilities:
   1. Ability to make operational judgment
   2. Ability to perform accounting and financial analysis
   3. Ability to conduct management administration
   4. Ability to handle crisis management
   5. Knowledge of the industry
   6. An international market perspective
   7. Leadership
   8. Ability to make policy decisions
   9. Knowledge and abilities of risk management

● Specific Objectives and Implementation of the Board Diversity Policy
   Yang Ming’s board consists of 11 directors including 3 independent directors. All of the Board members possess extensive experiences and expertise in
   marine industry, world economy, finance, accounting, laws, and management. Yang Ming’s directors with employee status account for 9%, and
   independent directors account for 27%. The term of 2 independent directors is less than 3 years and 1 independent director is 3-9 years. The age of 5
   directors ranges between 51-60 years old, 5 directors ranges between 61-69 years old, and 1 director is over 70 years old. The implementation of Board
   diversity policy is as follows:
Basic Composition Capabilities Professional Background
Gender Nationality Concurrent Positions in Yang Ming Age Tenure of Independent Director Management Leadership Industry Experience World Economy Accounting and Finance Marketing Legal Practice
51-60 61-69 Over 70
Cheng-Mount Cheng M R.O.C. V V V V V
Jiang-Ren Chang M R.O.C. V V V V
An-Chung Ku M R.O.C. V V V V V V
Keh-Her Shih M R.O.C. V V V
Chien-Yi Chang M R.O.C. V V V V
Chih-Li Chen M R.O.C. V V V V
Shao-Liang Chen M R.O.C. V V V V V
Wen-Ching Liu M R.O.C. V V V V V
Tar-Shing Tang M R.O.C. V 3-9 years V V V
Tan Ho-Cheng M R.O.C. V Less than 3 years V V V
Jr-Tsung Huang M R.O.C. V Less than 3 years V V V V
All board members are male currently. To improve gender equality in the composition of board members, our goal is to increase the ratio of female directors to 15% and hope to add one female director each for the term of 21st and 22nd board of directors.

The Board Independence

The Board of Yang Ming execute the independence, provide objective opinions on business affair and supervise the operation of Yang Ming. Besides, directors (include independent directors) do not violate the circumstances listed in Article 26-3 of the Securities and Exchange Act.

Yang Ming's Board including 3 independent directors which comprises 27% of the Board and keep their independence in the execution of business. They do not have direct or indirect interest to Yang Ming and also meet the requirements regulated in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companie.