Sat, May 27, 2006 - Page 12 News List

Bank may discuss suspension next week

By Amber Chung  /  STAFF REPORTER

Chang Hwa Commercial Bank (彰化銀行), the nation's No. 7 lender, may hold an ad hoc board meeting next week at the earliest to suspend its chairman, Chang Po-shin (張伯欣), after receiving a formal document from the Financial Supervisory Commission, the bank said yesterday.

The commission on Thursday night announced a decision to suspend Chang from the chairmanship for six months owing to alleged corporate governance misconduct in the bank's disposal of Taiwan Development Corp (台灣土地開發) shares.

The bank yesterday remained tight-lipped about possible penalties for the bank's president Chen Chen-jau (陳辰昭) and senior vice president James Chen (陳允進), who the commission criticized for failing to abide by internal controls during the share sale.

Chang Hwa spokesman Miles Chang (張明文) said that the entire share sale had complied with the law, adding that shareholders' rights and interests had been protected.

Taishin Financial Holding Co (台新金控), the bank's largest shareholder with a 22.5 percent stake and eight of the 15 board seats, denied that it would appoint board director Wang Wen-you (王文猶) as acting chair.

"We respect the board's decision. We do not have any preferential candidates for the acting chairmanship, nor any preset views on possible disciplinary action," Taishin Financial spokesperson Carol Lai (賴昭吟) said.

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