Johnny Sze Tsang-fai resigned yesterday as chairman and managing director of mobile-phone distributor Global Tech (Holdings), less than a week after failing to show up at the annual shareholders' meeting. The resignation follows repeated denials by the company in the past few weeks of media reports claiming certain members of its management had been detained and investigated in China in relation to tariff-avoiding parallel imports. Mr Sze's brother, vice-chairman Timothy Sy Ethan, said he would take over as chairman and managing director. Mr Sy said Paul Tse Po-lau, a long-time shareholder, had been appointed executive director. Mr Tse holds a stake of about 3 per cent in the firm. Mr Sy said his brother's resignation was for health reasons, and that he was in Canada with his wife. At last week's shareholders' meeting, none of the company's directors would respond to media inquiries about the company's operations, and the reason Mr Sy and Mr Sze did not appear. A spokesman for its public relations agency said at the time the brothers were attending another important meeting in Hong Kong. Global Tech announced on January 30 it was in talks to sell shares to an independent party. This came after a week-long suspension of its shares pending the release of certain price-sensitive information. Mr Sy said yesterday the company was still in talks with the potential investor, but it would not sell shares at the present low price. Global Tech shares plunged 13.5 per cent yesterday to 32 HK cents before the announcement of Mr Sze's resignation. The shares have fallen 43 per cent in the past month.