Friday, January 3, 2003
The Investment Commission under the Ministry of Economic Affairs in Taiwan (MOEA) to impose stricter standards in governing the holding companies, which make investments in China with funds coming from Taiwan.
Starting from Jan. 1, one person holding a 5 percent stake or more of a holding company will be regarded a major shareholder of the company and should apply to the government for approval for any China investment projects the major shareholder is involved. Currently, a major shareholder is defined under the common accounting standards as a person holding a stake of 20 percent or more of a company.
A major shareholder is regarded as having influential power to influence the company's investment policies. Over 4,000 enterprises have complied with the rules to complete registrations. This is the third time for the government to offer the exoneration to companies. The commission has worked overtime on New Year's Eve to meet the needs of companies. But those failing to make up the due registration will be ordered to retract their investments on the mainland plus face a maximum fine of NT$5 million.
The fines can go up to NT$25 million in certain cases. Tsai Lien Sheng, executive secretary of the Investment Commission warned that the persons who fail to register with the government for their unapproved China investments by the deadline will face heavy penalties. These people including former Vice Premier Hsu Liteh and former Chairman of Chung-Hsing Bank Wang Yu-yun.
Hsu invested in an IC foundry in the mainland through a venture capital company. Though he has withdrawn from the investment, he retains his chairmanship at the venture capital company involved with various mainland investment projects. Hsu still has to register with the government for the IC mainland investment even though he has withdrawn from this project, according to the MOEA officials.
By: DocMemory
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