Two factions at war over the control of household appliance maker Tatung Co (大同) held separate news conferences yesterday, with the faction made up of rebel shareholders urging the Ministry of Economic Affairs to allow an extraordinary shareholders’ meeting as soon as possible, while the faction belonging to the company accused the other of receiving funds from Chinese investors.
The controversy was sparked by a board meeting on June 30, when the company barred several shareholders who collectively hold a 53 percent stake in the company from voting. The ministry refused to recognize the new board, saying Tatung had improperly stripped some shareholders of their voting rights.
“This unprecedented violation of shareholder rights by a publicly traded company has made Taiwan a laughingstock of global capital markets,” said Shanyuan Group (三圓建設) chairman Wang Kuang-hsiang (王光祥), who leads the so-called “market faction.”
Photo: CNA
Wang called on the ministry to take action by allowing them to organize an extraordinary shareholders’ meeting at which a new board can be elected.
Wang said that once the market faction takes control, he would recommend former Taiwan Power Co (台電) chairman Lin Wen-yuan (林文淵) as Tatung chairman with the aim of freeing the company from the influence of the founding Lin (林) family and revitalizing its tarnished brand.
Meanwhile, Tatung lawyer Chao An (趙安), speaking at the news conference held by the so-called “company faction,” questioned the source of funds for Wang’s investment in Tatung and demanded that authorities conduct a thorough investigation before allowing an extraordinary shareholders’ meeting.
The company has long alleged that Wang and several other shareholders represent Chinese capital, in contravention of the Business Mergers and Acquisitions Act (企業併購法) and the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (兩岸人民關係條例).
The ministry did not immediately comment on the news conferences.
Minister of Economic Affairs Wang Mei-hua (王美花) last week said the ministry would reach a final decision this week on whether to allow the market faction to hold an extraordinary shareholders’ meeting.
Founded in 1918, Tatung was one of Taiwan’s most venerable and successful companies.
However, the company has been embroiled in boardroom drama and corporate scandals for almost a decade. Former Tatung chairman Lin Wei-shan (林蔚山) is serving an eight-year prison sentence for embezzling corporate funds. Tatung chairwoman Lin Kuo Wen-yen (林郭文艷) is the wife of Lin Wei-shan.
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