Fubon Financial Holding Co (富邦金控) chairman Daniel Tsai (蔡明忠) yesterday threw his support behind the financial regulator's new restriction that will bar the chairmen of local holding companies from heading up firms outside the finance sector, saying that it will help improve corporate governance.
The new rule has come under fire since the Financial Supervisory Commission made the announcement late last month.
"It's acceptable that financial holding companies should avoid taking chairmanships of industries outside the financial sector," Tsai said during an annual gathering with the media yesterday.
Currently, Tsai also chairs mobile operator Taiwan Cellular Corp (
But he added that it would be unreasonable to forbid a mega-bank chairman from taking the helm of firms outside the finance sector if they are controlled by his family.
To do so could encourage the appointment of frontmen, for example, while the family remained in charge.
"[This] would just go against the regulator's original idea of improving corporate governance," he said.
The new rule will take effect next January, although there will be a grace period of up to three years for company chairmen and presidents to complete their tenures at non-financial enterprises.
The rule is also expected to affect Eugene Wu's (吳東進) role at the Great Taipei Gas Corp (大台北瓦斯). Wu, who is chairman of Shin Kong Financial Holding (新光金控), currently heads up 24 non-financial businesses.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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