Tatung Becomes First Company Charged with Special Breach of Trust by FSC

Tatung Becomes First Company Charged with Special Breach of Trust by FSC

Source: UDN

July 10, 2020

Tatung Co. ran into controversy over the recent election of its board of directors. The company’s corporate faction denied the market faction the right to vote during the election for “illegally receiving funding from the Mainland”, citing the Business Mergers and Acquisitions Act. Yesterday, the Ministry of Economic Affairs rejected Tatung’s application to register the new board directors according to the Company Act.

Tatung stated that it deprived the market faction of shareholder rights in accordance with the law, adding that it would seek administrative redress through an administrative appeal.

In addition, the Financial Supervisory Commission (FSC) has reported Tatung for allegedly violating the Securities and Exchange Act. This is the first time that a public company has been charged with a special breach of trust owing to disputes over the board of directors election.

With regard to the corporate faction’s accusation of illegal Mainland investment, the FSC indicates that right after receiving a letter in May, it launched an investigation, adding that because the cross-border cooperation mechanism is involved, some time is still required to gather evidence.

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