Taipei, July 2, 2009 (CENS)--The Financial Supervisory Commission (FSC) may seek court receivership for Taiwan International Securities Corp., due to the dispute between the incumbent management and China Development Financial Holding, which holds the largest stake in the company.

The FSC has dispatched representatives to station in the company to monitor its operation and may seek court receivership of the company should its operation be paralyzed by the dispute.

The dispute broke out during the company`s shareholders` meeting for the election of new board directors and supervisors on June 30. The incumbent management team, headed by Chang Ping-chao, former legislator, refused to acknowledge the voting rights of China Development, saying great majority of the latter`s 48.54% stake in the securities firm was obtained in an illegal manner, a claim which is based on an ongoing legal case on the shareholding.

Therefore, the chairman of the meeting invalidated 42.9% stake owned by China Development in the balloting, against the strong protest of the latter`s representatives who stressed that the effect of the stake is secured by a provisional disposition of court.

The protest was ignored by the chairman, who subsequently announced a list of new board directors and supervisors resulting from the election, which was dominated by the incumbent management.

China Development, though, announced another list of new board directors and supervisors resulting from the election, which takes into account the entirety of 58% stake under its control, including 48.54% of its own and 9% from the solicitation of proxies, compared with 36% under the control of the incumbent management, including 21% of its own and 15% of proxies.

Both sides have sent their list of new board of directors and supervisors to the Department of Commerce, under the Ministry of Economic Affairs, for ratification, which has asked them to provide additional documents for inspection.


(by Philip Liu)