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State to dominate Hua Nan's board

The government is expected to secure a majority of board seats in Hua Nan Financial Holdings Co's (華南金控) shareholder meeting today, with chairman Lin Ming-cheng (林明成) -- who represents private shareholders -- staying at his post, the Ministry of Finance said yesterday.

The government controls 33.88 percent of shares in Hua Nan via other state-run banks. Together with the proxy votes it has secured over the past month, the government will have 38 percent of shareholder support at the meeting.

In comparison, Hua Nan's largest private shareholders, led by Lin, will have 46 percent of shareholder support, including 29.7 percent of stock holdings.

But for the sake of harmony between public and private shareholders, Lin's team agreed to give one to two board seats to the government, the result of negotiations that finished yesterday afternoon, Minister of Finance Ho Chih-chin (何志欽) said.

The government will obtain eight board seats and three supervisor slots, Ho said.
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