SFIPC filed civil action against Phison and its former Chairman Mr. Pua in 2019, claiming that Mr. Pua’s director position should be discharged in accordance with Article 10-1, Section 1 and Item 2 of the Securities Investor and Futures Trader Protection Act.
Taiwan Hsinchu District Court rendered judgment today to dismiss SFIPC filed discharge action.
Impacts on Phison:
Phison is operating normally. The court judgment does not influence Phison’s operation and finance.
SFIPC filed discharge action is derivative action with regard to Phison’s financial report case occurred in 2016. Phison’s CEO Mr. Pua stated that, since the occurrence of this case, he voluntarily appeared in governmental authority and actively cooperated to the investigation. Mr. Pua explained to governmental authority that, the reason why he did such special business arrangements at issue was to respond to severe competition, and for Phison’s long-term development. Mr. Pua further told that he did not have the motive to damage Phison nor cheat the investors. In addition, due to the financial report case, the company was instructed by competent authority to restate its financial statements, and the result showed that net profit and shareholder’s equity attributable to Phison was not changed. Mr. Pua expresses his respect to the court's decision to dismiss SFIPC filed discharge action. He also urges SFIPC to respect the court's decision and put an end to the dispute which has dragged on for several years.