The company's former Chairman, Mr. Rongjin Lin has been sentenced by the Taipei District Court of the violations of Article 171, Paragraph 1, subparagraph 2 and subparagraph 3 of the Securities and Exchange Act. The court sentenced today that,
I. Violation of Article 171, Paragraph 1, subparagraph 2 of unconventional business trading with an execution of four years in prison. (Authorized two exclusivity license agreements in 2008)
II. Violation of Article 171, Paragraph 1, subparagraph 2 of unconventional business trading with an execution of four years in prison. (Authorized eleven exclusivity license agreements in 2009)
III. Violation of Article 171, Paragraph 1, subparagraph 3 of breach of trust by over NT$100 million with an execution of eight years in prison. (Tripartite contracts in 2012).
IV. Violation of Article 171, Paragraph 1, subparagraph 3 of breach of trust with an execution of four years in prison. (FK agreement in 2012)
V. About four violations had been sentenced with an execution of ten years in prison, and the confiscation of illegal earnings.
The trial has been lasted for 2.5 years, and after about 60 time court appearances, summoned 20 witnesses, and disputes had been conducted by the end of last year. In order to ensure the rights of defendant, the trial has been extended to July of this year. The Court evaluated the involved evidences of messages and e-mails by the requested of Defender. The truth reviewed by full discretion with opportunity for defendant to respond fully.
The court carefully evaluated the evidences and sentenced Mr. Rongjin Lin as guilty by law to ensure and secure the rights of shareholders, and we’re deeply relieved for the justice. The company appreciated with honor to the judicial authorities. The company will discuss with legal team and attorney based on the indemnification and return will have further discussion and process.
TTY Biopharm is an OTC company in Taiwan, carrying expectations of the shareholders. Not only sustaining the faith of management, but also in compliance the corporate governance to fulfilling the social responsibilities. Even though the justice has been proved, but TTY will remember the lessons of the improper enforcement and misconducts of management to strengthen internal control, and improve the corporate governance to become a benchmark of international corporations.