One of Liu's allies jumps ship

One of Liu Tai-ying's (劉泰英) three main allies at China Development Financial Holding Corp (中華開發金控) jumped ship yesterday, leaving the chairman's fate at the company in question.

Board director Chen Chih-chuan (陳志全) quit because he wanted no part of the turmoil, sources said.

"Chen believes that the issue currently facing China Development goes far beyond the sphere of his management responsibilities and flatly refuses to get involved in [today's] discussions," said Tseng Ta-mon (曾達夢), a consultant at Fu Yi Investment Co (福誼投資), which is a subsidiary under shareholder Yin Yen-liang's (尹衍樑) Ruentex Corp.

Tseng yesterday confirmed Chen's resignation and absence at yesterday's China Developmentboard meeting, where he used to represent Yin.

The business consultant yesterday added that Chen was not under any pressure to quit and that Yin still supports Liu, a professor and friend of some 20 years.

Chen is expected to be absent from China Development's board meeting today, leaving five other managing directors, including Liu himself, to decide whether Liu should step down from his chairmanship at the nation's fourth largest financial services institution.

According to China Development, Liu still plans to chair today's board meeting to discuss his fate, defying a governmental complaint that his attendance at the meeting is inappropriate.

"As the company's chairman, Liu is sure to chair the [five-member] meeting, but he could stay away from the discussion [on his fate] if the board asks him to," China Development spokeswoman Grace Fang (方鳳山) said yesterday.

Vice Minister of Finance Susan Chang (張秀蓮), however, yesterday reiterated the ministry's tough stance, disallowing Liu's attendance at the meeting.

"Based on the principle of conflicts of interests, Liu must avoid attending the meeting [to discuss whether he should be disqualified], which is corporate common sense," Chang told reporters yesterday.

When asked if Liu would appoint his son to take up his post on the board, Chang said that the ministry will not veto any candidates as long as they meet the professional requirements.

Following Chen's resignation yesterday, there was speculation that Liu will have no other alternatives but to hand over his control of the company's management today. Otherwise, the finance ministry may move to dismiss Liu, should the company's board fail to reach a final decision by 5:30pm.

A vaguely defined regulation may empower the government to dismiss him by citing complaints voiced during Liu's indictment hearing relating to his lack of credibility and trustworthiness.

But it appears that today's vote may still end up in a tie, since Liu should be able to garner two votes from his hand-picked acting chairperson and temporary president -- Diana Chen (陳敏薰) and Lin Chun (林軍), while the remaining two board members, Benny Hu (胡定吾) and Lee Sheng-yann (李勝彥), have vowed to oust him.