re Corp. (CMPC) to expand its business scope to include the production of TV and broadcasting programs in addition to the original production of motion pictures on grounds that the written records on the firm's shareholder meeting over the business scope change were fabricated. Cheng Wen-tsang, chief of the GIO, said that the GIO issued licenses on Oct. 3, 2006 to the CMPC, originally owned by the opposition Kuomintang, to allow the firm to have KMT lawmaker Lawmaker Tsai Cheng-yuan as its new chairman and expand its business operations to include TV and broadcasting businesses.
But the GIO recently found that the written records of the firm's 2006 shareholder meeting given to the GIO were different from those given to shareholders and asked the CMPC to explain the discrepancy. Later, the company offered new written meeting records, which, however, were different from the both the ones given to the GIO and to the shareholders.
Accordingly, the GIO resolved to scrap the licenses issued last October to the CMPC, in accordance with relevant administrative procedures.
Once the licenses are revoked, the CMPC will return to what it was before Tsai assumed the chairmanship, meaning that the company is still a KMT-run enterprise, in which the KMT's Central Investment Holdings holds a 82.56 percent stake.
On April 27, 2006, the Central Investment Holdings sold its stake to Tsai's own company and two other private firms, with Tsai finally elected as new chairman of the CMPC.
GIO's Cheng yesterday urged the CMPC to clearly publicize the transactions of its shares, making the transactions subject to judicial examinations.
In response, Tsai said that the reasons cited by the GIO to scrap the new licenses issued to his company are totally nonsensical.
Tsai said his company initially offered only an excerpt of its shareholder meeting records to the GIO for reference, based on the same normal practice of other companies. Later on, Tsai continued, his company gave a complete version of the meeting records as requested by the GIO. "But it's quite ridiculous that such a practice has led the GIO to scrap the licenses of our company," Tsai said.
The KMT lawmaker said that the GIO's action is virtually a kind of political oppression, adding that he will invite lawyers to appeal to the Administrative Court to drop the GIO decision against the firm.
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