Taiwan’s United Daily News (udn) reports that the chairman of developer Haiwan Development was referred to prosecutors on suspicion of draining about NT$400 million from the company through related-party dealings, in a case under the Securities and Exchange Act. This paper reports only what the headline and our collected list confirm.
Udn ran a video report headlined “‘Left hand sells to right hand’ hollows out NT$400 million; well-known developer Haiwan Development chairman referred under Securities Act.” According to the headline, the chairman of the well-known builder is suspected of stripping about NT$400 million from the company through such transactions, and the case has been sent to prosecutors for a possible violation of the Securities and Exchange Act.
광고 문의 · 300×250“Left hand sells to right hand” is a phrase Taiwanese media often use for deals that look like transactions between two separate parties but are in fact controlled on both sides by the same person. If company assets are passed to related parties, or bought from them at inflated prices, the company loses while the controller gains. This paper could not confirm which assets changed hands or at what prices in this case.
What is confirmed and what is not
Three points in the headline are confirmed: the subject is Haiwan Development’s chairman, the amount is about NT$400 million, and the law cited is the Securities and Exchange Act. The date of the referral, the prosecutors’ office handling it, whether others are implicated, and whether the chairman admits the allegation are not in the material this paper collected. A referral is the stage at which investigators pass a case to prosecutors; it is not an indictment or a finding of guilt, and the outcome depends on further investigation and trial.
The Securities and Exchange Act is meant to protect financial transparency and investors at listed companies. Using company funds for private gain, or arranging deals that harm the company, is commonly called “hollowing out” (掏空) in Taiwan and can hurt shareholders and creditors.
What readers should know
Overseas Chinese readers who invest in Taiwan property or deal with Taiwanese developers should check the company’s disclosures and later statements from prosecutors and courts. This paper has not guessed at or invented details; this report rests on udn’s headline and our list, and we will add to it once the full text is confirmed. Source: United Daily News (udn.com).