The Financial Supervisory Commission (FSC) on Thursday rejected Nan Shan Life Insurance Co’s (南山人壽) pick for acting chairman, Yin Chung-yao (尹崇堯), citing a lack of experience.
The commission interviewed Yin twice, with the first interview conducted by Insurance Bureau Director-General Shih Chiung-hwa (施瓊華) and the second by FSC Chairman Wellington Koo (顧立雄).
“During the interviews, we tested Yin a lot to see if he is knowledgeable and experienced enough to make good operational decisions and to lead a large company such as Nan Shan,” Shih told a news conference, adding that the questions included academic and practical issues.
“Our conclusion is that Yin needs to deepen his professional competence and accumulate experience,” Shih said. “We urge the insurance company to rethink who its acting chairman should be.”
Given that Nan Shan has a lot of assets, the commission uses higher standards to examine a prospective chairperson’s qualifications, as the choice would affect policyholders’ interests, she said.
Nan Shan had 6.23 million policyholders with 14.3 million policies as of the end of September, commissions data showed.
“A chairperson leads the board of directors, makes decisions and demonstrates the ability to make sure managers employ the correct strategies,” Shih said.
Yin, son of Ruentex Group (潤泰集團) chairman Samuel Yin (尹衍樑), was appointed by Nan Shan’s board of directors to serve as acting chairman for two years from Sept. 20, after the commission suspended previous chairman Du Ying-tzyong (杜英宗) for two years over the insurer’s failure to maintain its information processing system.
Yin Chung-yao was Du’s special assistant and has been a company director for the past three years, but the FSC said being a director was only a basic condition, Shih said.
Yin Chung-yao on Thursday withdrew as the pick for acting chairman and the board appointed Donald Chen (陳棠), another director, in his place, Nan Shan said in a statement.
Chen, a former chairman of Land Bank of Taiwan (土地銀行) and Jih Sun Financial Holding Co (日盛金控), has been Nan Shan’s director since 2011.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a