Financial Supervisory Commission Identifies Listed Companies with Insufficient Shares Held by Directors and Supervisors
Taipei, June 22, 2023 – The Financial Supervisory Commission (FSC) announced on the 19th that 26 listed companies have been identified with directors and supervisors holding insufficient shares for three consecutive months. Among these companies, 14 are listed on the stock exchange, including Evergreen Iron and Steel (2211), Shizhi, Zhengda, Jiahe, Datong, Zhao Jin, Leadtec, Dahua Construction, Longming Green Energy, Kefeng, Chengmeicai, Team Group, Lanvin, and Sun Semiconductor.
Additionally, there are 12 companies listed on the Over-The-Counter (OTC) market, namely Shengyu Technology, Shuangmei Biotechnology, Guotong International, Hejin Electronics, Shanjing Industry, Yichang Technology, Sany Donglin, Junyi Electronics, Lianguang Communication, Mudong Optoelectronics, Jintai Technology, and Jiuqi Technology.
Furthermore, the FSC identified 31 listed companies and 17 OTC-listed companies where the ratio of directors to supervisors exceeds 50%. This brings the total number of companies to 48. Some of the listed companies with this issue include Guangli Biotech, Longbang International, Guanghua Holdings, Legend.com, Meiya Steel, Hony International, Baolai Construction, PetroChina, Guoshuo Technology, Qianxing Stainless, Haiyue International, Jingji Computer, Fuxin Technology, Jingyue Biology, China Manufacture, Lanvin Network, Zhonghua Engineering, Antai Commercial, Weixun Technology, Sanyang Industry, Realtek Semiconductor, Optical Group Laser, Xinju Enterprise, Jiawei Life, Weihua Technology, Longda Construction, Li Changrong Branch, Hongxu Holdings, Thunder Tiger Technology, Huangpu Construction, and Huangchang Construction.
On the OTC market, companies such as Taijing, Fuyu, Hewlett-Packard, Axiata Lida, Yijie Technology, Taiwan Haoding, Xinyin Enterprise, Xinji Information, Hongyi International, Wufeng Technology, Shanjing Industry, Jianxin Technology, Zhi Wei Information, Green River, Jiagang Precision, Zhihe Securities, and Baoshuo were found to have a similar issue.
The FSC’s identification of these companies with insufficient shares held by directors and supervisors aims to ensure transparency and accountability in corporate governance. It serves as a reminder for listed companies to comply with regulations and maintain a proper balance of shareholding among their management team.
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Source:
Economic Daily reporter Chen Peijia / Taipei
Real-time report Financial Supervisory Commission
Figure/United Daily News Department Information Photo
How does the FSC’s requirement for directors and supervisors to hold a certain number of shares promote corporate governance and align their interests with shareholders?
Technology, Xiwang Food, Qingcheng Cultural, Hengxun Technology, Aifu, Guosheng Securities, Sanmei Pharmaceuticals, and Longhui Capital.
According to FSC regulations, directors and supervisors of listed companies are required to hold a certain number of shares to align their interests with shareholders and promote corporate governance. Insufficient shares held by directors and supervisors can undermine their commitment to the company’s long-term success and create conflicts of interest.
The FSC has sent letters to the 26 identified companies, requesting them to rectify the situation within one month. If these companies fail to comply, the FSC may take further actions, including imposing fines or other penalties.
The FSC’s identification of these companies with insufficient shares held by directors and supervisors reflects its commitment to upholding corporate governance standards and protecting the interests of shareholders. By ensuring that directors and supervisors have a meaningful stake in the company, the FSC aims to enhance transparency, accountability, and long-term value creation in the Taiwanese capital market.
The FSC will continue to monitor listed companies’ compliance with shareholding requirements and take necessary actions to safeguard the integrity and stability of the market.
This article highlights a concerning issue: the Financial Regulatory Commission has discovered inadequate shareholding in 26 listed companies. This discovery raises questions about the effectiveness of existing financial regulations and the potential consequences for investors. Urgent action is needed to ensure transparency and protect shareholders’ interests.