May 13, 2014
Compal Electronics - In re the arbitration filed against Tatung

Board Meeting Resloution

Compal Electronics - In re the arbitration filed against Tatung


  
1. Parties to the legal matter and name of the court:

Parties: 

Compal Electronics, Inc. (Claimant)

 

Tatung Company (Respondent)

Venue: 

Chinese Arbitration Association (CAA)

 
2. Date of occurrence of the event: May 12, 2014
 
3. Background and circumstances of the matter: Compal has filed the arbitration against Tatung on March 29, 2013 according to executed shareholders agreement (including but not limited to special shareholders agreement and other corresponding agreements) to protect Company’s and its shareholders interests.
 
4. Course and progression of handling of the matter: The arbitration tribunal has reviewed this dispute and determined that Tatung Company is obligated to pay Compal NT$ 2,118,607,432 together with the interests by the rate of 5% per annum accrued from April 3rd, 2013 to actual paying date. Tatung Company shall also be required to shoulder one-third arbitration expenses.
 
5. Effect on company finances and business and estimated monetary amount: It is estimated that the Company will recognize the loss of approximate NT$ 4.73 billion in 1Q/2014 due to the arbitration award.
 
6. Countermeasures and status of amelioration: The Company will seek all legal remedies to overcome the unfavorable portion of the arbitration award.
 
7. Any other matters that need to be specified: N.A.

 

 

 

Compal Electronics, Inc.

Gary Lu

Senior vice president and Spokesman

Tele: (02) 886-2-8797-8588

Investor@compal.com