Wed, Nov 16, 2005 - Page 10 News List

THSRC approves plan to expand board

By Jackie Lin  /  STAFF REPORTER

The board of the Taiwan High-Speed Rail Corp (THSRC, 台灣高鐵), builder of the high-speed rail system, yesterday endorsed the addition of three new seats to its current 12-member board.

Two of the new board members will be recommended by the government, while the third will be selected after negotiations between the Cabinet and THSRC, said Arthur Chiang (江金山), vice president of THSRC's administration division.

The board also decided to call a provisional shareholders meeting on Jan. 20 next year to elect the three new board members, according to a company press release issued yesterday.

After the THSRC announced it would delay the launch of the high-speed rail for one year, to October next year, the government decided to gain more say on the company's board to help push forward the project it has invested in heavily.

In addition, the government pumped another NT$7.5 billion (US$223.81 million) into the project last month, after providing NT$12.5 billion, which resulted in the government becoming a major shareholder in the THSRC, with a 37 percent stake.

The government previously had an 11.89 percent stake in THSRC, thus securing two seats on the board.

"Based on the corporate governance system and the partnership between the government and private institutions in BOT [build, operate and transfer] projects, the company welcomes the Ministry of Transportation and Communications' delegates on the board to ensure the high-speed rail project's smooth operations," the company said in the press release.

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