Legislator Hsu Chiao-hsin's Brother-in-Law Indicted for False Capital Verification in Violation of Company Act

(CNA, Taipei, June 10) Tu Ping-cheng, the husband of Legislator Hsu Chiao-hsin's sister-in-law, is suspected of false capital verification during the establishment of his company, Han Cheng Rare Earth Co., in 2021. He allegedly transferred NT$8 million to the company account, and after completing the registration application, withdrew over NT$7.99 million. The Taipei District Prosecutors Office indicted Tu today for violating the Company Act and other offenses.

Prosecutors stated that Tu Ping-cheng established Han Cheng Rare Earth Materials Co., Ltd. in 2021. On October 20, 2021, he transferred a total of NT$8 million into the company's bank account to serve as paid-in capital. He then commissioned an accountant to issue a capital verification report for the company, stating that the share capital had been fully paid.

According to prosecutors, Tu applied to the Taipei City Government for company incorporation on October 25, 2021. This led the handling official, after a formal review, to mistakenly believe that the company's shareholder capital had been fully paid and approve the incorporation application on the same day. However, after completing the capital verification procedure by an accountant as stipulated in Article 7 of the Company Act, Tu subsequently withdrew a total of NT$7,994,985 from the company account.

The Taipei District Prosecutors Office concluded its investigation today and indicted Tu Ping-cheng for violations of the Company Act, the Business Accounting Act, and forgery under the Criminal Code. (Editor: Chang Ming-kun) 1150610