Chang Hwa Bank (
Chang Hwa's board approved the appointment in a regular meeting yesterday, the nation's seventh-biggest lender by assets said in a filing to the Taiwan Stock Exchange (TSE) yesterday.
Julius Chen will replace Chen Chen-chao (
Julius Chen will be on board as soon as the Financial Supervisory Commission's gives its approval -- possibly early next month -- Chang Hwa spokesman Miles Chang (張明文) said in a telephone interview.
Taishin Financial has a 25.5 percent stake and eight of 15 board members in Chang Hwa, while the government holds an 18 percent stake and four board seats.
However, the management change, which many believe will help accelerate Taishin Financial's acquisition of Chang Hwa, provoked strong opposition from the state-controlled bank's labor union.
Chang Hwa Bank Industrial Union staged a protest with hundreds of employees early yesterday morning prior to the board meeting to voice its opposition to the management reshuffle.
The union called on the Ministry of Finance and the commission to investigate the nomination and appointment procedures.
"We strongly question the legitimacy of the appointment in yesterday's board meeting with the suspended chairman Chang Po-shin (張伯欣) and a total of seven board directors, including four government representatives, absent," union president Tsao Ping-kun (曹炳坤) said.
The bank's Constitution gives the power to nominate presidential candidates to the chairman's post, Tsao said.
Julius Chen's nomination was made by Wang Wen-you (
Since both Kao and Wang are board directors representing Taishin Financial, the union said that the appropriate thing to do would be to wait until Chang resumes his post on Nov. 27 when his six-month suspension expires.
The union also questioned the the absence of four state-appointed board directors at the meeting, and said that that it suspected the finance ministry was in collusion with Taishin. This was a deliberate act of neglect in failing to stand up for state assets and minor shareholders' rights and interests, Tsao said.
Still, the labor union was tight-lipped about any strike action, saying that industrial action was a last resort.
In response, Deputy Minister of Finance Liu Teng-cheng (
Liu said directors Chang Ching-hsi (
However, Lin called in sick and Zhuang, a lawyer, was required to go to court, Liu said.
"Although all four government directors were absent, it did not affect the meeting as the government had already given its approval to the bank's personnel change, allowing Julius Chen to serve as president," the official said.