Tightened rules on removing executives at publicly traded companies are to come into effect next month, barring board directors from proposing such dismissals through extraordinary motions, the Financial Supervisory Commission said yesterday.
Companies contravening the new rules are to face fines from NT$240,000 to NT$4.8 million (US$8,019 to US$160,385), the commission said, adding that the removal of chairpersons under illegal circumstances would not be recognized by the Minister of Economic Affairs (MOEA).
Currently, board directors can make notification of such motions seven days before a board meeting.
Photo: Kelson Wang, Taipei Times
As removing or electing a company’s head has significant effects, such a motion should not arrive without enough time to be discussed by board members, the Securities and Futures Bureau told an online news conference.
The tightened rules also apply to extraordinary board meetings, and the commission is to have the authority to specify under what conditions board directors can convene such meetings, the bureau said.
“Several companies suggested clearer conditions for holding extraordinary board meetings, as current regulations only apply to meetings in the case of emergency,” bureau Chief Secretary Kao Ching-ping (高晶萍) said.
However, defining what scenarios can be viewed as emergencies is complicated, Kao added.
The commission is planning to provide sample scenarios to companies as references, such as an emergency situation arriving when shareholders fail to elect a new head at an annual general meeting, she said.
In November last year, Solar Applied Materials Technology Corp (光洋科) reshuffled management, with Ma Chien-yung (馬堅勇) being removed as chairman by activist directors through an extraordinary motion.
The removal was dismissed by the MOEA in December, saying the case was not an emergency.
Apple Inc might make one out of four iPhones in India by 2025, JPMorgan & Chase Co analysts said yesterday, as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country. JPMorgan expects Apple to move about 5 percent of iPhone 14 production from late this year to India, which is the second-biggest smartphone market in the world after China. It is also estimating that about 25 percent of all Apple products, including Mac, iPad, Apple Watch and AirPods, would be manufactured outside China by 2025 from 5 percent currently. The US company
HEADING SOUTH: The US company chose Kaohsiung as its site as more customers, partners and start-ups have expanded their operations to the southern city Qualcomm Inc yesterday inaugurated a new innovation center in Kaohsiung as it steps up efforts to foster local start-ups and a 5G technology ecosystem in the city, following in the footsteps of its local partners. The US chip company’s move fits the Kaohsiung City Government’s plan to build a semiconductor supply chain within the next five years, highlighted by Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) first chip plant in the city. TSMC plans to start building the factory by the end of this year, and to start production of 28-nanometer and 7-nanometer chips there in 2024. Qualcomm said it had been
SLUMPING DEMAND: Inventory has climbed by up to 12 weeks as suppliers are under mounting pressure to offload excessive reserves, a TrendForce report said The price of DRAM chips is expected to fall at a steeper rate of 13 to 18 percent next quarter, as high inflation continues to weigh on demand for consumer electronics, causing chip inventories to soar, market researcher TrendForce Corp (集邦科技) said yesterday. The downtrend in DRAM prices could extend from a quarterly decline of 10 to 15 percent in the third quarter, the Taipei-based researcher said. “Demand for consumer electronics continued to stagnate during the third quarter, which used to be a high demand season,” TrendForce said in a statement. “During the quarter, memorychip consumption and shipments both showed quarterly
GlaxoSmithKline (GSK) in July made its consumer health products division a separate entity as it transforms into a world-leading biopharmaceutical company. By uniting science, technology and talent, the company is aiming to prevent and treat diseases with innovative vaccines, specialty pharmaceuticals and general medicines. GSK’s headquarters annually invests NT$192 billion (US$6.07 billion) in research and development, focusing on immune science and advanced technologies in human genetics. GSK’s drug and vaccine development focuses on infectious diseases, HIV, oncology and immunology. Investing in clinical trial research each year, GSK also brings drug development to Taiwan. It cooperates with 17 medical institutes and research