CHB CONTROL:The Taiwan High Court said a ‘contractual obligation exists as long as Taishin Financial remains the largest shareholder in Chang Hwa Commercial Bank’
Date: May 18, 2017
By: Crystal Hsu / Staff reporter
The Taiwan High Court yesterday lent support to the validity of a 2005 agreement that required the Ministry of Finance to help Taishin Financial Holding Co (台新金) win majority control of the board of state-run Chang Hwa Commercial Bank (CHB, 彰銀).
However, the ruling failed to put an end to the decade-long management rights dispute, as the ministry vowed to file an appeal and asked shareholders to rally behind government-backed candidates in a board election next month.
Taishin Financial welcomed the court’s decision and urged Premier Lin Chuan (林全) to intervene and help “deliver justice.”
“The contractual obligation exists as long as Taishin Financial remains the largest shareholder in CHB,” the court said in the ruling. [FULL STORY]