No internal strife, firm says after two top executives quit TCL Corp, an unprofitable mainland electronics product maker, failed to win approval from independent shareholders to cut the size of its board yesterday, after it announced the resignations of two senior executives the day before. At the annual general meeting TCL won the support of shareholders with about a 20 per cent interest for a proposal to cut the number of directors to 12 from 15 and the number of deputy chairmen from two to one, shy of the required two-thirds to get it approved. The company now has 13 board members after chief operating officer Yuan Xinsheng and senior vice-president Hu Qiusheng announced their resignations on Tuesday, a TCL spokeswoman said. Analysts said the resignation of the two senior executives reflected difficulties within the company, which posted losses last year and in the first quarter. 'There is politics going on inside the company, otherwise it doesn't make sense to reduce the board by a bit,' an analyst said. 'The chairman wants to consolidate power and keep out certain people. 'By reducing the board size, the shareholders can't appoint to the board people whom the chairman doesn't like.' The TCL spokeswoman denied there was internal strife, adding: 'The shareholders felt they needed to discuss the motion further.' The reason given to reduce the board size was to improve the efficiency and transparency of decision-making and thus improve corporate governance, she added. Liu Fei, vice-president of TCL Corp and chief executive of TCL Communication, declined to comment on the resignations.