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FSC yet to decide whether to file appeal on UMC case

FSC yet to decide whether to file appeal on UMC case

A spokesman for the Cabinet-level Financial Supervisory Commission said yesterday that the FSC will decide at an appropriate time whether to appeal to the Supreme AdministratiUMve Court to reverse a ruling by the Taiwan High Administrative Court's Taipei branch that revoked a FSC decision to fine a chip manufacturing tycoon for failing to make public information on his company's investment in China.
The FSC will decide whether to file an appeal to the Supreme Administrative Court after it has received a formal court ruling on the case, its spokesman said.
Robert Tsao (曹興誠), former chairman of board for the Untied Microelectronics Corp., appealed to the high administrative court after he was fined by the FSC for covering up information about his company's investment in China.
The FSC began looking into the case two years ago after prosecutors became suspicious that improper ties existed between the giant chipmaker company UMC and its Chinese partner He Jian Technology (Suzhou) Co.
The prosecutors searched UMC's offices and detained a former company executive. At first, the crux of the matter seemed to be whether the UMC had violated the law by transfering funds and technology to He Jian without government approval.
In April of 2005, FSC became interested in a different issue over whether UMC had violated shareholders' rights by failing to report its dealings with He Jian.
FSC finally decided the affirmative, and imposed fines totaling NT$3 million on Robert Tsao, who was UMC Chairman at the time.
At that time, Tsao took out a newspaper ad in which he denied improper behavior but also announced that UMC intended to obtain a 15% stake in the Chinese company in exchange for "past assistance."
FSC relied on the ad to support its finding that Tsao's behavior had in fact been improper, and the fines were enforced.
In late April, Tsao announced that he would challenge the FSC's decision by appealing the ruling at the high administrative court. FSC insisted that it had conducted business properly.


Updated : 2021-05-11 16:42 GMT+08:00