TAIPEI (Taiwan News) - The government’s Financial Supervisory Commission (FSC) might remove one of the country’s wealthiest businessmen, Daniel Tsai (蔡明忠), as vice chairman of Fubon Financial Holdings (富邦金) after two months if the company does not improve its practices by then, reports said Friday.
The holding reportedly broke laws separating financial companies from other businesses by requiring all proposals to the board to be signed off by Tsai beforehand, in effect handing over the real power of decision to the vice chairman, the Apple Daily reported.
The FSC sent a letter to Fubon Friday cautioning the powerful holding to correct the situation or to face the removal of its vice chairman after two months, according to the report.
FSC Minister Wellington Koo (顧立雄) reportedly told journalists that a vice chairman only holds the same privileges and rights as any other member of the board, and that he can only act if the official chairman is absent or has a valid reason not to be able to execute his authority.
The Fubon Group also needed to change the way in which board proposals at its affiliate, the Taipei Fubon Bank, needed to be approved first by the chairman and vice chairman of Fubon Financial Holdings, the FSC said. It investigated a similar case at the Far Eastern Group but found no infractions, according to the Apple Daily.
Tsai is a member of the family which founded Fubon, and which repeatedly appears on the list of Taiwan’s wealthiest families and business leaders.