Former Chairman of Phison K.S. Pua Wins Discharge Lawsuit

Background:
Securities and Futures Investors Protection Center (SFIPC) filed civil action vs. Phison Electronics Corp. and its former chairman K.S Pua in 2019, claiming that his 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.

Verdict:
Taiwan Hsinchu District Court rendered judgment to dismiss SFIPC filed discharge action.

Impacts on Phison:
The company is operating normally. The court judgment does not influence its operation and finance.

Phison’s response:
SFIPC filed discharge action is derivative action with regard to Phison’s financial report case occurred in 2016. CEO Pua stated that, since the occurrence of this case, he voluntarily appeared in governmental authority and actively cooperated to the investigation. He explained to governmental authority that, the reason why he did such special business arrangements at issue was to respond to severe competition, and for firm’s long-term development. He further told that he did not have the motive to damage his company 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. 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.