Boardroom spat embroils China Dev
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TAIPEI, Taiwan (Reuters) -- Taiwan's Ministry of Finance and Chinatrust Group have tentatively taken control of the board of China Development, Taiwan's largest venture capital firm, a ministry official says.
The official did not give a reason for the move Monday.
But local media have reported that the Chinatrust Group, owner of Taiwan's largest private bank, has been fighting with China Development chairwoman Diana Chen for management control of China Development.
The government and Chinatrust are the two largest shareholders in China Development. Each own about a six percent stake and control eight of China Development Financial Holding's 21 board member seats.
A final decision on the takeover would be made at China Development's shareholders' meeting on April 5, said the ministry official, quoting comments Sunday by finance minister Lin Chuan.
"Shareholders with a less than 30 percent stake determined the composition of the board. Is there a flaw with such a decision?" Chen told reporters on Monday.
Chinatrust shares are down 0.51 percent at T$39.40, China Development shares are up 1.09 percent percent to T$18.60 Monday afternoon, while the main Taiex share index is up 0.14 percent.
The ministry said it had negotiated with major shareholders of China Development on Sunday before announcing the changes to the board.
"But the ministry has yet to decide whether it will appoint the next chairman or let Chinatrust take the position," the official said.
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Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
