Someone sent fake docs saying China Dairy’s chair and deputy quit
Health & Biotech
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China Dairy has had a harder time that most getting reinstated to the ASX, after a series of extraordinary events “hampered” its attempts.
Someone lodged fake documents saying its chairman and deputy chair quit.
It can’t access company funds to pay its accountant — which has quit — because the Hong Kong Company Registry, where it’s registered, doesn’t have accurate information about the company.
And before he was sacked in May, the company alleges the CEO failed to show up for board meetings.
China Dairy Corporation (ASX:CDC) was suspended from the ASX in December last year after the market operator suspected that someone else — not an elected board member — was calling the shots.
On Tuesday, it gave the above explanation to its long-suffering shareholders as to why.
Company in crisis
After chief executive Youliang Wang was turfed out in May he immediately called a meeting, via a significant shareholder allied with him, to get himself re-elected and sack everyone else.
The meeting is in July and in Ningbo, China — both details the China Dairy board says is unfair to its largely Australian shareholder base — so that element of the saga is yet to run its course.
In May, the company also had to admit that its annual results for all of 2017 couldn’t be relied on after auditors said there had been a material change in relating to a shareholding in subsidiary company, Shangzhi Yulong Cattle Co.
On Tuesday, however, China Dairy said they have “taken decisive action” to get the company back on track.
These actions have not, so far, been successful.
Aside from sacking Mr Wang, allegedly “due to his refusal to participate in board meetings and related performance issues”, they snagged a Sydney lawyer as a board member — who then quit because of the demands of his legal practice.
They’re in talks to find a new accountant and correct the documents held by the Hong Kong Company Registry and have found a new CEO though, Sydney-based Eric Lin.
They announced — and then lost — a company secretary on the same day last week, who told Stockhead he had not accepted the position when the announcement was made.
Stockhead has attempted to contact the company, but it currently does not have any current Australian or Hong Kong contact details.