Background:
Taiwan High Court rendered judgment on August 10, 2022 on the criminal action associated with Phison’s financial report case that occurred in 2016.
Verdict:
In accordance with Taiwan High Court’s judgment, Phison’s CEO Mr. K.S. Pua is sentenced 5-year probation. During probation period, Mr. K.S. Pua is also required to make donations to national treasury for charity purposes, and attend legal education programs.
Facts:
- K.S. Pua will continue to serve as Phison’s CEO.
- Phison is operating normally. The court judgment does not influence Phison’s operation and finance.
- Phison’s finances are strong.
- The aforementioned financial report case also made Phison readjust its corporate governance requirement, actively execute institutionalized management and build a corporate social responsibility mechanism covering ESG and other related aspects. Compared with 2016, Phison’s corporate governance evaluation scores in Taiwan have continued to rise (in 2021, the company ranked in the top 6%~20% of listed companies in Taiwan, with a corporate governance evaluation score of 88.21 points), and the MSCI score has also increased from CCC to BB (2021), and the Dow Jones Sustainability Index (DJSI) rating increased from 41 to 63 (2021). The increase in these evaluation scores not only represents Phison’s emphasis on ESG, but also represents its commitment to maintaining and practicing corporate governance.
Company Response:
From Mr. K.S. Pua’s statement, he respects Taiwan High Court’s judgment, and will discuss with lawyers for follow-up actions.
