Kuo Ming-chien: Concurrent Directorships Compliant, Politely Declines Cathay Financial Senior Advisor Role

(Central News Agency, Taipei, June 30) Regarding the controversy over concurrent employment, former Cathay United Bank Chairman Kuo Ming-chien issued a six-point statement today, emphasizing that on the day he concurrently took on the role of independent director at Alchip Technologies Ltd., he completed the declaration and filing of related parties in accordance with Cathay Financial Holdings' system, with no instances of non-declaration or delayed declaration. He has also politely declined the offer to serve as a senior advisor for Cathay Financial Holdings. If reports violate the duty of verification, he has instructed his lawyer to gather evidence and will pursue legal action for defamation and other offenses.

Cathay Financial Holdings stated that it respects Kuo Ming-chien's decision to decline the senior advisor position.

Previously, while serving as a director at Cathay Securities Investment Trust Co., Ltd. (CSIT), Kuo Ming-chien became an independent director at Alchip Technologies Ltd. starting May 29 last year. Due to CSIT's internal oversight, funds and discretionary accounts managed by CSIT invested in Alchip Technologies Ltd. stock, crossing the red line of related parties. CSIT announced the recalculation of net asset values for 8 funds, and Kuo Ming-chien subsequently resigned as a director of CSIT. He then resigned as a director of Cathay Financial Holdings, Cathay United Bank, and Cathay Private Equity on June 26 this year.

Hengye Law Firm issued a statement on behalf of Kuo Ming-chien today, presenting his six points. First, on June 24, media reports revealed his concurrent role as an independent director at Alchip Technologies Ltd., which led to questions about Cathay Financial Holdings' internal management mechanisms. Recently, some media outlets have falsely accused the two Hong Kong companies where he serves as a director of having Chinese capital backgrounds, severely misleading the public and creating a political narrative.

Kuo Ming-chien stated that while he initially intended to cooperate discreetly with the investigation procedures of the competent authorities, he felt compelled to clarify numerous inaccurate reports.

Second, regarding his concurrent directorship at Alchip Technologies Ltd., he initially submitted information about the concurrent position and obtained approval from Cathay Financial Holdings before taking office, in accordance with Cathay Financial Holdings' internal regulations. On the day he assumed the role, he completed the declaration and filing of related parties according to Cathay Financial Holdings Group's existing system, with no instances of non-declaration, delayed declaration, or intentional concealment. Cathay United Bank has also externally confirmed the accuracy of these circumstances.

Kuo Ming-chien emphasized that he did not participate in any investment decisions or transaction executions at CSIT, nor did he obtain any improper benefits through such means.

Third, the companies where he serves as a director, Far East Horizon and Shun Shing Holdings, are listed on the Hong Kong Stock Exchange and has been delisted in 2024 respectively. Both are wholly-owned by a Taiwanese couple, are legitimate businesses, and he was appointed as a director before he became Chairman of Cathay United Bank. After joining Cathay Financial Holdings, he declared these positions in accordance with the law. As a non-executive director of these two companies, it is impossible for him to be involved in any illegal activities. He reserves the right to pursue legal action against any organizations or individuals who have published malicious reports without reasonable verification.

Fourth, he has over 30 years of experience in various financial industry roles, including investment banking and private equity. He has always valued his reputation, strictly adhered to laws and regulations, and maintained a high degree of self-discipline. Whether at Citigroup, J.P. Morgan Chase Bank, Blackstone Group, or during his tenure at Cathay Financial Holdings Group, he has handled all matters with adherence to laws, professionalism, rationality, respect, and communication. He humbly reviews all criticisms and suggestions from various parties.

Fifth, during his ten years as Chairman of Cathay United Bank, he always prioritized the best interests of all Cathay Financial Holdings shareholders and the company, diligently performing his duties. The market controversy recently arising from his concurrent role as an independent director at Alchip Technologies Ltd. was truly unforeseen.

To uphold the principle of self-discipline, Kuo Ming-chien stated that in addition to resigning from CSIT, he subsequently resigned from all positions including director of Cathay Financial Holdings and Chairman of Cathay United Bank. He has also politely declined the invitation from Cathay Financial Holdings Chairman Tsai Hong-tu to serve as a senior advisor for Cathay Financial Holdings, hoping to quell the controversy soon and allow the relevant events to be judged based on facts.

Sixth, for malicious acts that violate the duty of verification or balanced reporting, he has commissioned his lawyer to gather evidence. He will pursue criminal and civil liabilities according to the law for defamation, aggravated defamation, and other infringements of reputation and credit, and will not show leniency. (Editor: Yang Lan-hsuan) 1150630

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