PJ Asset Management Urged that the Board of Directors of SinoPac FHC (2890 TT) Seek Compensation from the Relevant Responsible Personnel who were Charged by the FSC or Prosecutors
PJ Asset Management Urged that the
Board of Directors of SinoPac FHC (2890 TT) Seek Compensation from the Relevant
Responsible Personnel who were Charged by the FSC or Prosecutors
TAIPEI,
Taiwan, July 10, 2019 /PRNewswire/ -- PJAM recently sent a letter to urged that
the Board of Directors of Sinopac Financial Holdings ("SinoPac FHC"
or "Company") should immediately seek compensation from the relevant
responsible persons who were previously charged by the FSC or prosecutors due
to the events happened between 2016 and 2017.
PJAM's
points are as follows:
1.
PJAM and its related parties hold more than 6% of the total voting shares of
SinoPac FHC.
2.
SinoPac FHC was fined at huge amounts by the FSC for many cases happening in
the years of 2016 and 2017. Some of the cases involved high-level management
team and board director, whom had not only been prosecuted, but also seriously
damaged SinoPac FHC's image and all shareholders' benefits. PJAM raised
relevant questions in the Company's 2018 annual shareholders' meeting and
investor relationship meeting, and demanded the board of directors then to take
immediate actions and make a claim for the relevant losses. As the public
attentions died away, we haven't seen any concrete action taken by the Company
in the past years to seek the loss compensation. Even though the other
shareholder raised the same question in 2019 annual shareholders' meeting, Mr.
Chu, CEO of Sinopac FHC, dodged the issue and chose not to respond it
specifically.
3.
Although PJAM felt pleased that SinoPac FHC's first half year's performance in
2019 has recovered to its right track, the Company's Integrity Management
Committee which was set up due to the series of events of internal control
negligence and management team's wrongdoings, has never explained to
shareholders or investors what has been implemented and strengthened within the
organization to avoid the repetition of misconducts, not to mention that its
independent directors in the financial holding company refused to have a
face-to-face meeting with PJAM upon our Mar meeting invitation. By
claiming itself above corporate governance standard, Sinopac FHC doesn't give
PJAM the comfort that the Company's corporate governance transparency has
improved since 2016.
4.
The fines penalized by the competent authority for the previous directors'
misconducts were huge, which included NT$ 10 million of Ting Sing Group's case
in 2016 and NT$10 million of J&R Trading's case in 2017, and the incurred
loan loss was over NT$ 400 million. In accordance with the Article 64 of the
Financial Holding Company Act, FHC should make a claim from the responsible
persons after the fine is paid. However, to our knowledge, SinoPac FHC so far
has not taken concrete legal actions related to this issue. The people involved
were high level management team and related parties to the major shareholder's
family, PJAM has reasonable doubt that the Company appeared to take biased and
inattentive approach in an attempt to protect the people involved and allow
time to dilute public attention.
5.
PJAM strongly suggests the board members of SinoPac FHC respond to the
above-mentioned concerns explicitly and immediately to convince all
shareholders that Sinopac FHC did rise from the gloomy past and stand on firm
ground to create a better value for all shareholders.