SinoPac chairman resigns after two weeks in office


CNA

TAIPEI, Taiwan — SinoPac Financial Holding Co. (永豐金控) Chairman Chiu Cheng-hsiung (邱正雄) announced Monday he was resigning from the post he assumed earlier this month after his predecessor was accused of extending illegal loans.

Chiu, who was a director on the financial holding company’s board, was named acting chairman on June 17 at an extraordinary meeting of the board of directors after prosecutors found then SinoPac Chairman Ho Shou-chuan(何壽川) and other company executives to have made NT$5 billion (US$168 million) in illegal loans.

Ho was detained on June 18 for suspected violations of the Securities Exchange Act.

The Financial Supervisory Commission (FSC) on June 19 affirmed the appointment of Chiu as the company’s chairman.

Chiu’s eligibility to be chairman was later questioned, however, because he was on the company’s board when the problematic lending occurred.

On Monday, the FSC said it respected SinoPac’s decision to approve Chiu’s resignation, and added that the new chairman will be required to fulfill his corporate governance role, abide by the law and improve the company’s risk management.