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Evergreen succession battle rages with intended heir ousted by half brothers

BATTLE lines were drawn this week over the succession to the leadership of Taiwan's Evergreen Group when the three eldest sons of the late chairman Dr Chang Yung-fa abolished the chairman's post, reported Lloyd's List.

This follows Friday's announcement by Chang Kuo-wei, Dr Chang's only son with his second wife and fourth son overall, who he had been chosen by his father to be chairman and the one to inherit the family fortune, including Evergreen Marine, the world's fifth largest container line.

Evergreen Group said Chang Kuo-wei had been named as chairman in his father's will, but added that "negotiations among all of Dr Chang's sons are continuing".

In defiance of Chang Kuo-wei, the other sons - who have share voting power in Evergreen Group of firms do so - scrapped the chairman post and the management centre of the group, the Evergreen Group management headquarters.

Half brothers Bronson Hsieh and Chang Ming-po, who held vice-group chairman titles in Evergreen Group, have been renamed as advisors to Evergreen International, which acts as a de facto holding firm of various Evergreen subsidiaries including Evergreen Marine. Lin Rong-hua, who held the same title, has resigned.

Dr Chang's handwritten will, disclosed last week in the Taiwan press, had stipulated that Mr Hsieh - who has been the public face of Evergreen Line - should remain in his position and support the activities of Chang Kuo-wei as chairman.

But the will did not provide sufficient legal grounds to protect the intended beneficiary from attack.

Speculation is rife on whether Chang Kuo-wei will remain as Eva Air chairman after being ousted by his half-brothers.

"The management team of Evergreen Line stays intact. The chairman [of Evergreen Marine] is the same," said a source close to the company. "What changes is the group structure above."

"As to who is in charge there, I think now the eldest son should be the one."