2010-08-30
Former Managing Director may Lose Position as Company’s Consultant
The former managing Director of China Development Financial Holdings (CDFH) may lose his position as the Company’s current consultant after the Financial Supervisory Commission (FSC) amends relevant regulations. The amendments are proposed to prevent former responsible persons of companies continuing to make major decisions on behalf of the company by taking on positions within the firm, such as a consultant, Honorary Chairman or Chief Executive Officer (CEO). Upon enactment of the proposed amendments by the FSC, Mr Zhongying Gu may become the first person affected by the new rules.
Mr Gu was dismissed on 1 May 2009 as the Managing Director of CDFH. However, he was employed three (3) days later as a consultant. Mr Gu also represented the CDFH at press interviews in regards to the future development strategy of CDFH.
As a result of this situation, Taiwan’s Executive Yuan requested the matter to be further investigated. FSC has responded to the matter by proposing amendments to the Regulations Governing Qualification Requirements for Responsible Persons of a Financial Company and the relevant Internal Control Enforcement Rules.
The new regulations will not only cover financial institutions but also cover securities and insurance companies. The term ‘responsible persons’ is defined in the current prevailing as the director, supervisor, senior manager or other responsible persons not including consultant and CEO. Further discussions will be held by FSC to determine whether the changes will affect people’s employment rights and how the regulations can be amended without excessively affecting companies’ decision making power.
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