Outside faction gains control of board at Taiwan appliance maker Tatung

22-Oct-2020 Intellasia | TaiwanNews | 6:02 AM Print This Post

Outsiders won the power struggle for control of the board of troubled appliance maker Tatung Co. Wednesday (October 21) after the group was deemed to have received illegal Chinese investment.

Founded in 1918, Tatung is best known in Taiwan for its rice cookers. However, it has been struggling with two ailing affiliates, panel maker Chunghwa Picture Tubes Ltd and solar wafer producer Green Energy Technology.

A “market faction” of outsiders has emerged to wrest control over Tatung away from the “company faction” of its founders, the Lin family, and Chairwoman Lin Kuo Wen-yen in particular.

On October 13, the results of an investigation showed that Chinese interests held 5.87-percent share in the company. This resulted in Tatung being fined NT$25 million (US$872,000) and a renewed call for a board election.

According to the Act Governing Relations between the People of the Taiwan Area and the Mainland Area, “any individual, juristic person, organisation, or other institution of [China], or any company it invests in any third area may not engage in any investment activity in the Taiwan Area” until it receives permission from the relevant authorities.

In Wednesday’s vote, the “market faction” won seven seats on the board, while the “company faction” held on to only two, including one for Lin Kuo.

According to Taiwanese law, the new board will have to meet for the first time within 15 weeks to select a new chairperson. A former Democratic Progressive Party official not related to the founding family, Lin Wen-yuan, is widely expected to become Tatung’s new chair. He was previously chair of China Steel Corporation and Taiwan Power Corporation, CNA reported.

https://www.taiwannews.com.tw/en/news/4034700

 

Category: Taiwan

Print This Post

Leave a Reply

You must be logged in to post a comment.