TAIPEI (The China Post) — Members of the Tatung workers’ union gathered in front of the Securities and Futures Bureau, Financial Supervisory Commission (金管會證券期貨局) on Wednesday to protest against a security concern involving Chinese influence in the company.
On June 23, Tatung workers’ union requested the bureau investigate illegal Chinese funds entering the company. The prime suspect of the controversy, Ren Guo-long (任國龍), is a major shareholder in the cooperation, with over 23 percent of the stock on hands.
Workers claim that due to Ren’s involvement in the Chinese Communist Party, he has a legal obligation to gather information for the Chinese government.
“Protect Taiwan; refuse Chinese funds!” the workers chanted.
Another major shareholder, Cheng Wen-yi (鄭文逸), was reportedly inclined to introduce Chinese funds to the firm, causing the strikers to demand his resignation from the board.
On June 30, Tatung operated a shareholder meeting that revoked many shareholders’ voting rights.
For this, the bureau issued a binding ruling that rebuked the meeting’s result and stated that the board can no longer hold a shareholder meeting without third-party supervision.
Tatung is a contractor of the Taiwanese government, charged with the responsibilities of maintaining the household registration and compulsory military service registration.
If China were able to gain access to the systems, the result could be devastating, the strikers said.
Tatung has been facing years of declining profits and was only able to squeeze through last year with the selling of land by one of Tatung’s subsidiaries. Align this with Tatung’s ever-conflicting board, it is extremely vulnerable to Chinese influence, the members of the union argued.
However, experts have suggested that if Tatung focuses on selling its best-selling products, improves its technology on producing motors for electric vehicles and concentrates on the long term benefits of the company instead of the annual statistics, Tatung will have a greater chance of coming back as a healthy giant in the Taiwanese business sector, they argued.