Insurance companies barred from board elections

Insurance companies barred from board elections

Ahead of the June shareholders meeting season, the Legislative Yuan passed an amendment to the Insurance Act after the third reading limiting the voting rights of insurance interests pertaining to board directors and supervisors. After prompt Presidential Proclamation, regulations will officially go into effect and be applicable to any board elections of listed and OTC companies this year stipulating that insurance industry shareholders cannot participate in board voting.

In other words, CTBC Holding (2891) single largest shareholder, Nan Shan Life Insurance’s 4.89% stake, will be useless in this year’s board director and supervisor elections. The same goes for Gobal Life Insurance’s stake in Taiwan Life Insurance.

The Financial Supervisory Commission pointed out Tuesday, domestic insurance companies hold a greater than 5% stake in 81 listed and OTC companies. In the future, insurance company shareholders will not be able to participate in the elections of these 81 companies.

In addition, after this amendment, insurance company investment in foreign currency denominated bonds such as Formosa Bonds and mergers and acquisitions of overseas insurance companies will not be included in overseas investments, essentially relaxing overseas investment.

Updated : 2021-04-15 08:31 GMT+08:00