Qisda responds to charges of holdings report irregularities

By Ted Chen, The China Post

TAIPEI, Taiwan — Qisda yesterday responded on behalf of Chairman Lee Kun-yao (李焜耀) and two other people regarding charges leveled by the Taoyuan Prosecutors Office.

Lee, chairman and CEO of the BenQ-AUO Group, commonly known as the Acer Group, was charged along with two executives for failure to report changes in the holdings of shares at its subsidiary, Qisda.

Qisda asserted that the action went beyond what was called for. “In the entirety of Taiwan’s judicial history, there has never been a charge or indictment for missed paperwork concerning the reporting of changes in shareholding,” said Qisda, adding that they question the motives behind the escalation of an administrative error into an indictable violation of the Securities and Exchange Act.

The company questioned whether prosecutors had taken liberties with how the laws were interpreted and applied in this case, while expressing regret over the prosecution’s ruling.

The company stated they plan to formulate a strategy once official court documents have been received. They anticipate the suit to escalate beyond the levying of an administrative penalty fine for the failure to report and disclose shareholding statuses, implying that the prosecutors may extend investigations to past financial and annual reports, with the intent to uncover unfounded claims of forgery and misrepresentation.

Company shares fell 5 percent as news of the charges were released, and closed at NT$7.3 at the end of yesterday’s session.