Web

BenQ Chairman Offers Resignation

Embattled BenQ Chairman K.Y. Lee offered his resignation to the BenQ board of directors over the losses the company sustained from its purchase of Siemen’s mobile phone unit and BenQ’s subsequent failure to turn the business around. However, BenQ’s board of directors refused to accept the resignation, instead demanding Lee stay on and bring the company back to profitability..

BenQ bought Siemens’ mobile phone operations in 2005 and sunk over $1 billion dollars into the operation trying to turn it into a workable business. After trying to streamline operations, BenQ finally gave up and, failing to find a buyer for the business, recently began the process of essentially selling it for scrap.

BenQ’s board announced it will form a task force to review and report on the losses incurred from the acquisition and operation of its mobile unit.

BenQ is also under fire for the recent arrest of three top executives—including the company’s chief financial officer—by Taiwanese police over allegations of insider stock trading. The three face allegations of having sold shares of BenQ stock just prior to the company announcing significant losses from BenQ Mobile.

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