Polaris Securities Co (寶來證券), the nation’s second largest brokerage, yesterday appointed a new chairman, Lin Shau-dai (林孝達), to fill the vacancy left by Wayne Pai (白文正), who was found dead after an apparent suicide yesterday morning after being reported missing a day earlier.
The board of Polaris called a special meeting yesterday to put 75-year-old Lin, chairman of affiliated Polaris International Securities Investment Trust Co (寶來投信), in charge of the brokerage whose shares plunged 6.8 percent to close at NT$15.8, their lowest level since Feb. 12.
Peter Huang (黃古彬), president of Polaris Securities, told reporters at a press briefing that he regretted Pai’s death but assured investors that the tragedy would not affect the company’s operations.
Huang said Pai had called him after landing in Penghu on Wednesday and said that if he was no longer there, the company should hold a board meeting as soon as possible to elect a new chairman.
The securities company’s shares have plunged 31 percent since early May after prosecutors raided Polaris headquarters and detained Pai, who was suspected of irregularities. He was questioned by prosecutors on May 11 regarding the 2004 sale of Polaris International shares to the brokerage. He was released on bail of NT$20 million (US$658,000).
Polaris paid NT$899 million four years ago for 28 percent of Polaris International from 22 individuals, with 12 sellers related to the company’s management or directors, including Pai, a company official said at that time.
Polaris spokesman Wong Jian (翁建) attributed Pai’s death to media accusations that he bought a honorary doctorate degree from National Chiao Tung University.
“Pai valued his reputation more than his life,” Wong said.
“The allegations that he purchased the degree dealt him an excruciating blow,” Wong said.
The company filed a missing person’s report on Thursday, saying that Pai was suffering from emotional problems.
Financial Supervisory Commission (FSC) Vice Chairwoman Susan Chang (張秀蓮) echoed the observation.
Chang told a press briefing yesterday that the financial regulator was shocked at the sudden death of Pai, who appeared to have an outgoing, sunny disposition.
“The commission is deeply sorry about the mishap,” Chang said. “Pai made distinguished contributions to the nation’s capital market during his longstanding service in the industry.”
A self-made man, Pai, 55, founded the Polaris group that encompasses securities, futures, investment and trust, banking and property insurance operations, with a total workforce of more than 6,000.
The securities firm takes up more than 15 percent of the market share in the on-line trading brokerage industry, with overall net assets of more than NT$300 billion.
Chang praised Pai as innovative and forward-looking.
Polaris launched the first Exchanged Traded Fund in Taiwan in 2003 and its size grew 10-fold within a year.
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