Taiwan regulator: Independent director's civil case doesn't disqualify him

Taiwan's Financial Supervisory Commission (FSC) has affirmed the eligibility of Chen Wei-lung as an independent director for Guopiao Financial Holding, despite shareholder concerns.

At a recent shareholder meeting where Guopiao Financial Holding completed its board elections, a shareholder raised questions about Chen Wei-lung's suitability. However, Wang Yun-chung, deputy director of the FSC's Banking Bureau, stated that Chen's case pertains to a civil matter. This distinction is crucial, as the disqualification criteria for financial institution directors specifically target criminal convictions, not civil disputes.

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The case involved by Chen Wei-lung is a 'civil case,' which is unrelated to the 'criminal' cases stipulated in the eligibility requirements for financial holding company executives. Therefore, the negative eligibility conditions for independent directors do not apply.

Wang explained that financial institutions' directors must meet both positive and negative eligibility requirements. While criminal convictions can lead to disqualification, civil cases do not fall under the negative criteria. He added that if circumstances arise after a director's nomination, they are expected to resign, or the FSC can remove them.

Separately, the article notes recent attention on whistleblower protection following a workplace bullying controversy at Guopiao Securities. Huang Chung-hao, deputy director of the Securities and Futures Bureau, outlined existing regulations requiring financial institutions to establish reporting systems with measures for confidentiality, independent investigation units, and protection against adverse employment actions for whistleblowers. Currently, no formal whistleblower complaints related to the Guopiao Securities case have been filed with the relevant authorities.

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Financial institutions must establish a reporting system and should have three major protective measures, including: 1. Setting up an independent receiving and investigation unit; 2. Maintaining confidentiality of the whistleblower's identity and case details; 3. Not affecting the whistleblower's employment rights due to the reporting behavior.