Taiwan’s Formosa Plastics Group (FPG) founder Yung-Ching (Y.C.) Wang’s son, Dr Winston Wong, has filed a lawsuit to void the alleged transfer of almost 90% of the business tycoon’s personal fortune to Bermuda-based offshore, non-charitable trusts.
The lawsuit has been filed in the Supreme Court of Bermuda, seeking to invalidate the transfer of assets that are now valued at more than US $15 billion. The fund transfer threatens the loss of control over a business empire, according to Wong.
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The assets transfered, reportedly, include millions of shares of FPG’s "Four Treasures" – Formosa Plastics Corp., Formosa Chemicals & Fibre Corp., Nan Ya Plastics Corp., and Formosa Petrochemical Corp. – and could hold the key to control of the iconic Taiwanese conglomerate.
Excluding stock held by other FPG companies, the offshore trusts currently are the largest shareholders of Formosa Plastics and Formosa Chemicals & Fibre, and the second largest shareholders of Nan Ya Plastics and Formosa Petrochemical. These holdings have never been declared by FPG to its shareholders nor to Taiwanese regulators.
Wong’s lawsuit focuses on the contention that the transfer of Y.C. Wang’s assets into the trusts is invalid and he seeks to have these assets returned to their rightful owners: Y.C. Wang’s estate and legal heirs.
Wong’s investigation found that the trusts hold as much as a 19 percent stake in FPG publicly listed companies. However, the trusts’ interest in FPG has never been disclosed by FPG, nor by the family members who have knowledge of the trusts – a potential violation of Taiwanese corporate securities disclosure rules.
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