Innovative International (Holdings) has admitted its biggest shareholders, its chairman, vice-chairman and managing director, had been forced to reduce their control over the company.
The decline in their influence at the antenna-maker followed the forced sale of their stock which had been used as collateral for loans.
Innovative said the shareholders had undertaken to maintain their control in the company at above 30 per cent as it was a requirement specified in one of the company's syndicated loan deals.
Fenman Holdings - a company 55.56 per cent owned by Innovative chairman Stephen Chang Lien-hing, 29.44 per cent by vice-chairman David Cheung Kem-cheng and 15 per cent by managing director Simon Chang Fu-seng - controls 168 million shares in Innovative.
Fenman pledged 120 million shares to three financial institutions as collateral for loans. One of these institutions sold 15.6 million shares on the market between Monday and Wednesday out of its 25 million share portion of the collateral pool.
The sold shares represented 2.7 per cent of the company's issued capital.