Tatung Company (Tatung) convened its 2020 annual general meeting (AGM) on June 30. It is found that Tatung withheld the ballots for motions and ballots for elections from certain shareholders and proxy solicitors with powers of attorney (POA) at their registration and had over 50% of total voting shares arbitrarily denied, which greatly infringed on shareholders’ interests and are considered in violation of corporate governance and shareholder activism.

     The FSC had the TDCC investigate the matter and it was found that such behaviors violated Article 3, Paragraph 3 and Article 6, Paragraph 2 of the “Regulations Governing the Administration of Shareholder Services of Public Companies”. Therefore, the FSC executed a corrective order on Tatung based on Article 39 of the “Securities and Exchange Act” on July 14, stating that Tatung must assign a shareholder services agent to handle the company’s shareholder services within the next two months. Thereafter, Tatung is no longer allowed to conduct its own shareholder services.

     The FSC has clearly stated that compliance with all applicable regulations must be followed when conducting shareholder services. Henceforth, any company that manages their own shareholder services or any shareholder service agents should maintain a neutral position and obey the law as mandated. 

 

 

Contact Unit: Securities Trading Division of the Securities and Futures Bureau

Telephone: 02-2774-7167

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