Principles Confirmed for Consolidation and Share Sale for State-run Financial Institutions

        The Executive Yuan recently confirmed its principles for the consolidation of state-run financial institutions, and for the sale of government-owned shares in such institutions. For financial institutions in which government shares do not constitute a controlling interest, priority will be given to the sale of the shares. For financial institutions in which the government owns a controlling share, consolidation or the release of shares will be carried out through the mechanism of open competition. For financial institutions in which the government, following review, decides to maintain a controlling interest, the “commissioned operation” or “public ownership, private operation” method of management will be adopted and experts will be brought in to serve as independent directors in order to strengthen corporate governance.

According to the Executive Yuan, the consolidation or sale of government ownership will serve primarily to reinforce market structure and corporate governance in the banking industry, and facilitate the development of financial institutions with international competitiveness. For further information, please consult this website: http://www.ey.gov.tw/lp.asp?CtNode=421&CtUnit=296&BaseDSD=7.

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