To enhance Board functions, improve corporate governance, and fulfill CSR, CDF has formed functional committees like Audit Committee, Remuneration Committee, and CSR Committee under the Board of Directors. To further improve the decision-making quality of the Board, strengthen corporate governance and improve the functions of the Board, the 3rd meeting of the 7th Board of Directors resolved on June 24, 2019 to bring the Risk Management Committee currently under the control of the CEO to a functional committee under the Board of Directors; the 6th meeting of the 7th Board of Directors resolved on October 1, 2019 to establish the Ethical Corporate Management Committee; the 10th meeting of the 7th Board of Directors resolved on December 30, 2019 to form the Strategic Development Committee. Regarding mandate for each functional committee, please refer to the 2020 AGM Report for details.

For effective corporate governance and Board functionality, CDF, at the 10th meeting of the 6th Board of Directors held on November 21, 2016, formulated "Principles for the Performance Evaluation of the Board of Directors". To further strengthen the independence and effectiveness of Board performance evaluation, the 29th meeting of the 6th Board of Directors held on January 30, 2018 and the 7th meeting of the 7th Board of Directors held on October 28, 2019, amended these Guidelines, bringing in external evaluation to Board’s performance. CDF is also following "Sample Template of Self-Evaluation or Peer Evaluation of the Board of Directors of XX Co., Ltd." of the Taiwan Stock Exchange Corporation expanding Board’s evaluation to Functional Committees modifying the self-evaluation questionnaire from "Yes/No" on a five-point scale.

As per the "Principles for the Performance Evaluation of the Board of Directors" CDF's Board of Directors should conduct at least one internal evaluation of Board’s performance every year, and the scope of evaluation should include the Board as a whole, individual Board members, and functional committees; starting from 2018, CDF should enlist independent institutions or experts and scholars in conducting external evaluation at least once every three years to strengthen the independence and effectiveness of Board’s performance.