Plot thickens as sacked China Dairy chief tries to axe the board
Health & Biotech
Health & Biotech
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China Dairy Corp axed its chief earlier this week – but that hasn’t stopped him calling a general meeting to elect himself back on the board.
Youliang Wang was terminated from his role on Tuesday, after being cut from the board earlier in the month.
But the next day, Mr Wang requisitioned a general meeting to remove current board members, including the chairman, and elect himself amongst two others.
Today, the company confirmed the former chief had no powers, and termination had been effective immediately:
“The board of directors wishes to advise shareholders that Wang Youliang’s employment as CDC CEO has been terminated by the Board effective from 8 May 2018, and that he is no longer authorised to make any transactions on behalf of the company including any financial or related transactions effective from 8 May 2018,” it said.
Mr Wang has been chief since the company’s debut on the bourse in 2016 – often pictured as the face of the company.
But he was stripped of his board membership last week – in favour of independent representative Kevin Yau.
It follows ASX recommendations to add more independence to its board – just one of several requirements from the bourse to be reinstated to trade.
The stock has been in suspension since December last year and last traded at 6.6c.
The company said it intended to finalise all outstanding ASX requirements by the end of the month.
Mr Wang isn’t the only personality making headlines at the company – last year the company was grilled by the ASX about an alleged ‘shadow director’.
On December 11, the Hong Kong-based company was suspended pending a response to ASX queries about its governance — and the presence of an alleged potential de facto director, Mr Xiaoran “John” Zhang.
At the time, the ASX said “it has been suggested to ASX that Mr Xiaoran ‘John’ Zhang, who is not a member of CDC’s board, is acting as a de facto director of CDC”.
China Dairy said it was all down to a misunderstanding by Mr Zhang’s PA, telling the market in two more responses that the PA had been adequately admonished.
“The company understands that Mr Zhang has since reprimanded his personal assistant regarding this oversight.”