Hsinchu, Taiwan-based ChipMos Technologies Ltd. today reported that two of its directors have been indicted by the Taipei District Prosecutor’s Office in connection with alleged embezzlement during the late 1990s at Pacific Electric Wire & Cable Co. Ltd.

According to the Taipei District Prosecutor’s Office, the charges against Hung-Chiu Hu and Jwo-Yi Miao concern Pacific Electric, which was incorporated in Taiwan and had been listed on the Taiwan Stock Exchange until April 28.

Hu was taken into custody by the Taipei District Prosecutor’s Office in connection with the indictment. Hu had served as chairman of ChipMos prior to May 19, but currently holds no office other then a director.

A third ChipMos director, Robert Ma Kam Fook has been implicated in connection with the alleged embezzlement at Pacific Electric.

Miao and Fook are no longer officers or employees of ChipMos. Fook submitted his resignation from the board of directors of ChipMos, effective December 18.

Today, ChipMos’ board of directors accepted Fook’s resignation and requested that Hu and Miao also resign from the board.

Hu and Miao were removed from their positions on any committees of the board and appointed independent directors Yeong-Her Wang to the audit committee and Pierre Laflamme to the compensation committee. The company is in the process of identifying additional independent directors to serve on its board.

The board of directors also established a special investigation committee of independent directors to identify and investigate any past and present dealings between ChipMos, including its subsidiaries and affiliates, and Hu, Miao and Fook and any companies or entities affiliated with any of them.

The special investigation committee includes Laflamme and Wang to be assisted by independent legal and accounting advisors and is to report its findings to the board upon conclusion of the investigation. It is not known how long the investigation will take or when the findings would be reported.

By: DocMemory
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