Criticism rejected over China Gas sackings

PUBLISHED : Thursday, 28 April, 2011, 12:00am
UPDATED : Thursday, 28 April, 2011, 12:00am


A substantial shareholder of China Gas Holdings has rejected criticism of its role in dumping two directors.

SK Group of South Korea, which effectively holds 9.7 per cent of China Gas, said yesterday that it fulfilled its obligations and duties as a shareholder during a China Gas meeting on Tuesday.

The Korean chaebol said the meeting was conducted 'in a fair, transparent and legal manner', responding to criticism by China Gas founding shareholder, Hai Xia Finance Holdings of China's State Council.

Hai Xia said on Tuesday it 'deeply' regretted seeing SK Group 'actively supported, participated in and pushed for removing its representatives as China Gas directors.

Shareholders voted to remove the representatives - former chairman Li Xiaoyun and former vice-chairman Xu Ying - during a sometimes stormy three-and-a-half hour meeting.

As well as criticising SK Group, Hai Xia attacked unnamed China Gas directors for what it termed 'disgraceful behaviour' in tabling the motions.

In response, China Gas said last night that 'it reserved all rights in relation to Hai Xia's statement'.

China Gas said the removal of Li and Xu was based on 'doubts about the integrity' of their roles as directors because the company had evidence showing that they failed to keep the board informed of the arrests of former managing director and director, Liu Minghui, and former executive president, Huang Yong.

Shenzhen police arrested Liu and Huang together last December on allegations of stealing corporate assets and have since been detained.

China Gas said the dismissals of Li and Xu 'were not aimed at' Hai Xia.

Hai Xia said it would not seek to have new representatives on the China Gas board to replace Li and Xu.

China Gas shares drifted lower yesterday, falling 2 HK cents or 0.62 per cent, to HK$3.19 after declining 6.1 per cent on Tuesday.


China Gas Holdings has seen its share price slip in Hong Kong

The stock fell two HK cents to HK$3.19, after a fall on Tuesday of: 6%