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(Dec 05, 2008) Taiwan's new Statute on the Taiwan Financial Holding Co., Ltd. was promulgated on November 26, 2008. The Statute was given retroactive enforcement from January 1, 2008. The new law specifies:
- the Ministry of Finance as the competent authority referred to in the Statute's provisions;
- the establishment of the Taiwan Financial Holding Company by the Bank of Taiwan and other state-owned financial institutions, with the option afterwards to incorporate other financial institutions as subsidiaries, but the government stake must be at least 90%;
- restriction of the holding company's business operations to investment in and management of the enterprises in which it invests;
- the functions of and the methods of organizing the board of directors, supervisors, and auditors;
- the determination of the personnel structure and matters of remuneration, retirement, pension, and the like;
- the drafting of the company charter; and
- the non-applicability of the Government Procurement law to procurement between the company and subsidiaries or between the subsidiaries.
(Statute for Financial Holding Co., Ltd, 6832 The GAZETTE OF THE OFFICE OF THE PRESIDENT 2-4 (Nov. 26, 2008), available at http://content.glin.gov/summary/213510.)
Upon its launch almost a year ago, then Premier Chang Chun-hsiung was quoting as saying that the Taiwan Financial Holding Co. would become "the18th-largest in Asia and the 89th-largest financial institution in the world," with combined assets of NT5.12 trillion (about US$153 billion) resulting from the merger of the Bank of Taiwan, the Land Bank of Taiwan and the Export-Import Bank of the Republic of China. (Taiwan Financial Holding Co. to Be Inaugurated Jan. 1, CHINA POST, Dec. 28, 2007, available at http://www.chinapost.com.tw/business/asia/b-taiwan/2007/12/28/136675/
Taiwan-Financial.htm.) The holding company has 308 domestic and 16 overseas branches. Its formation through the merger of the three state-owned financial institutions was reportedly "part of the government's efforts to upgrade the overall competitiveness of the country's financial industry." (Id.)
|Author:||Wendy Zeldin More by this author|
|Topic:||Banks and financial institutions More on this topic|
|Jurisdiction:||Taiwan More about this jurisdiction|
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Last updated: 12/05/2008