Shareholder Questions Bank Chairman's Multiple Roles, Citing Suitability Concerns

Tsai Chen-yu, brother of Cathay Financial Holding Chairman Tsai Hong-tu and a shareholder himself, has issued a strong statement questioning the appropriateness of Kuo Ming-chien's numerous concurrent directorships while serving as chairman of Cathay United Bank. Tsai specifically pointed to Kuo's roles in Hong Kong-based Far East Horizon and Shuncheng Holdings, in addition to his known positions at eMemory Technology and Ruentex Development. He raised concerns about whether these companies' capital structures have been thoroughly investigated. Tsai emphasized that Kuo holds a staggering number of directorships and independent directorships externally. Given that Cathay United Bank had over NT$5.4 trillion (approximately $167 billion) in total assets and more than 10 million customers as of the end of March, Tsai questioned whether the bank's chairman should not be "fully focused" on managing the institution and protecting the financial assets of its vast customer base and shareholders. While acknowledging that Taiwanese law does not limit the number of directorships for private bank chairmen, Tsai argued from a financial industry perspective that the sheer volume of Kuo's external roles could impact his suitability and appropriateness for the banking chairmanship, potentially disregarding the interests of Cathay United Bank's customers and shareholders. The statement also directed criticism toward Cathay Financial Holding's two independent directors, Wang Li-ling and Wu Tang-chieh. Tsai noted Wang's past role as acting chair of the Financial Supervisory Commission (FSC) and her focus on fintech and regulatory technology, and Wu's experience as a former director-general of the Securities and Futures Bureau and former vice chairman of the FSC, responsible for corporate governance blueprints. He expressed surprise that these directors appeared to "turn a blind eye" to the bank chairman's extensive external commitments. Furthermore, Tsai voiced concern that if the FSC were to investigate internal controls and compliance at Cathay Financial Holding for any shortcomings, the backgrounds of Wang and Wu might lead to a lenient review. As a member of the Lin Yuan Tsai family and a former long-term operator of Cathay Group's banking business, Tsai Chen-yu made a heartfelt appeal for Cathay Financial Holding to rectify these issues promptly, ensuring the confidence of shareholders and customers and maintaining the prestige of the Lin Yuan and Cathay Financial Holding brands.

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The number of directorships and independent directorships held by Kuo externally, in addition to the aforementioned positions, is truly astonishing.