Baoneng Group, the largest shareholder of Vanke, have asked for an extraordinary general meeting (EGM) to reshuffle Vanke’s board of directors, including Chairman Wang Shi and President Yu Liang.
Vanke said that the company received the requisition notice on June 24 and have 10 days to decide whether to convene an EGM.
The notice comes after Vanke has upset Baoneng and China Resources, Vanke’s second largest shareholder, by announcing plans to make Shenzhen Metro the largest shareholder.
In the notice, Baoneng highlights that Wang should be removed as a director because he had spent most of the time between 2011 and 2014 studying abroad and had not fulfilled any duties for the company even though he had collected more than 50 million yuan in salary. Baoneng also criticizes other senior managements’ failure to appropriately fulfill their duties in protecting interests of shareholders, and said that they have not handled Vanke’s restructuring plan properly.
“Since middle management runs Vanke’s daily businesses, the company’s operations would not be affected even if shareholders voted for the entire board to be replaced. The major shareholder may simply appoint a new board or replace senior management onto it”, said an unnamed analyst, “Another better scenario would be for Wang to leave on his own while some current directors got reappointed.”
Besides the 10 directors, the notice also asks to remove two supervisors at the company.