Taiwan's Financial Supervisory Commission (FSC) has proposed draft legislation aimed at preventing major shareholders from improperly meddling in the affairs of financial holding companies and banks. The latest draft, submitted for review, limits the penalties to fines, removing penalties on company heads while retaining other sanctions like salary cuts and suspensions. Earlier drafts had proposed fines of up to NTD50m (USD1.55m), restrictions on voting rights, and mandated share sales. This move follows recent instances where major shareholders allegedly overstepped their bounds, leading to sanctions on several financial holding firms. The previous draft faced backlash from the financial industry, prompting adjustments. FSC Chairman Thomas Huang expressed hope for a phased approach to gain public support, while analysts question the proposed fines’ efficacy against power-driven shareholders.
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