Lin Cheng-yi (林誠一), a senior adviser to President Chen Shui-bian (陳水扁) and former chairman of the now defunct Macoto Bank (誠泰銀行), was elected chairman of China Development Financial Holding Co (中華開發金控) yesterday, wrapping up a chaotic two-week period in the boardroom of the nation's sixth-largest provider of financial services.
"Under chairman Lin's leadership, China Development Financial is expected to begin smoothing mutual management and improving corporate governance and shareholders' rights and interests," China Development Financial spokesperson Sherie Chiu (
Lin's appointment received the unanimous support of directors who were present at the company's ad hoc board meeting yesterday, Chiu said.
China Development has 21 board members and three superintendent seats. Only one independent director, Cyrus Chu (朱敬一), and one superintendent, Chen Tien-jy (陳添枝), were absent yesterday. Chu is a former vice president of Academia Sinica, and Chen is a former president of the Chung-Hua Institution for Economic Research.
Earlier yesterday, Lin was recommended by the Ministry of Finance to replace former chairman Chen Mu-tsai (
This move, approved only as late as yesterday morning by the Cabinet, came as a big surprise, even though there was much speculation that Lin, who is known as a close ally of President Chen Shui-bian (
Minister of Finance Joseph Lyu (
"This had nothing to do with the Presidential Office. What we were concerned about was the candidate's professional skill and his background," Lyu told reporters after China Development Financial had elected Lin their new chairman.
"His combination of financial expertise and legal background were the major reasons why he stood out," he said.
Lin, 69, graduated from National Taiwan University's law department and holds a master's degree from Keio University's Graduate School of Law in Japan. He has served as a lawyer for nearly 20 years.
Currently the chairman of the Macoto Cultural and Educational Foundation (
Macoto bank was known for its creative marketing strategies in promoting credit cards. It once issued a "son of Taiwan" credit card, which broke records after featuring President Chen as its spokesman, underlining the strong ties between Lin and Chen.
Macoto was merged with Shin Kong Financial Holding Co (
"We hope Lin can help strengthen corporate governance of China Development Financial and boost transparency of information disclosure," Lyu said.
Liu Teng-cheng (劉燈城), director-general of the ministry's National Treasury Agency, said the ministry had contacted the Financial Supervisory Commission to investigate China Development Financial's alleged improper capital flows -- as disclosed by a local Chinese-language business weekly.
According to a cover story published by Business Today (
The report also criticized China Development Financial president Angelo Koo (
The minister further reiterated that if the Koo family failed to boost its stake holding in China Development Financial to the promised 15 percent before the board meeting next year, the government would not withdraw from management of the entity and will continue to play a critical role in supervising the company's governance.
China Development Financial said yesterday it was considering filing a lawsuit against the weekly for the report the company said was "incorrect and libelous."
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