Punishment of the Administrative Fine imposed on the Responsible Person of Conduct by CFTC Precision Limited
2017-07-14
1. Date the punishment was imposed: July14, 2017.
2. Recipient of the punishment: Mr. Chiu○○, Responsible person of the conduct by CFTC Precision Limited
3. Legal basis of the punishment: Paragraph 8, Article 26-3 of the Securities and Exchange Act, paragraph 2, Article 3, paragraph 1, Article 16, and subsection 7, paragraph 1, Article 17 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
4. Facts of the violation and reasons:
(1) On April 24, 2017, the board meeting of CFTC Precision Limited reviewed the measure proposed by the shareholders of removing the director. The director subject to the proposal had a conflict of interest with regard to the discussion at the meeting, but failed to disclose the significant substance of the relation of the stakeholder. Also, the Company failed to specify the name of the interested director, and the significant substance of the relation of stakeholder, the reasons for recusal or non-recusal and the state of recusal in the minutes of that board meeting. It is therefore determined as a violation against paragraph 1, Article 16, and subsection 7, paragraph 1, Article 17 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
(2) Furthermore, the board meeting of CFTC Precision Limited on April 28, 2017 discussed the removal of a certain independent director, but failed to specify the reason of the meeting and notify each of the directors and supervisor 7 days in advance. Also, the removal of the independent director did not qualify as an emergency. It is therefore determined as violation against paragraph 2, Article 3 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
5. The disciplinary action: Responsible person of the conduct by the Company is charged with a punishment of an administrative fine of NTD 480 thousand pursuant to subsection 7, paragraph 1, Article 178 and paragraph 1, Article 179 of the Securities and Exchange Act.
Contact Office: The Securities and Futures Bureau Corporate Finance Division
Contact Person: Chang, Yi-hsin, Section Chief 2774-7409
Please send your inquiry to: http://fscmail.fsc.gov.tw
2. Recipient of the punishment: Mr. Chiu○○, Responsible person of the conduct by CFTC Precision Limited
3. Legal basis of the punishment: Paragraph 8, Article 26-3 of the Securities and Exchange Act, paragraph 2, Article 3, paragraph 1, Article 16, and subsection 7, paragraph 1, Article 17 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
4. Facts of the violation and reasons:
(1) On April 24, 2017, the board meeting of CFTC Precision Limited reviewed the measure proposed by the shareholders of removing the director. The director subject to the proposal had a conflict of interest with regard to the discussion at the meeting, but failed to disclose the significant substance of the relation of the stakeholder. Also, the Company failed to specify the name of the interested director, and the significant substance of the relation of stakeholder, the reasons for recusal or non-recusal and the state of recusal in the minutes of that board meeting. It is therefore determined as a violation against paragraph 1, Article 16, and subsection 7, paragraph 1, Article 17 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
(2) Furthermore, the board meeting of CFTC Precision Limited on April 28, 2017 discussed the removal of a certain independent director, but failed to specify the reason of the meeting and notify each of the directors and supervisor 7 days in advance. Also, the removal of the independent director did not qualify as an emergency. It is therefore determined as violation against paragraph 2, Article 3 of the Regulations Governing Procedure for Board of Directors Meetings of Public Companies.
5. The disciplinary action: Responsible person of the conduct by the Company is charged with a punishment of an administrative fine of NTD 480 thousand pursuant to subsection 7, paragraph 1, Article 178 and paragraph 1, Article 179 of the Securities and Exchange Act.
Contact Office: The Securities and Futures Bureau Corporate Finance Division
Contact Person: Chang, Yi-hsin, Section Chief 2774-7409
Please send your inquiry to: http://fscmail.fsc.gov.tw
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Update：
2017-07-19