Threat of action after ATV chief suspended

Taiwanese tycoon Tsai Eng-meng has threatened legal action after ATV's board suspended chief executive Nancy Hu, in what he says was a breach of a directors' agreement.

Tsai said the move was initiated by board members who are relatives of mainland tycoon Wong Ching, who is involved in a tussle with Tsai for control of the station. Tsai called the suspension of Hu on Wednesday shocking and ridiculous.

In a statement yesterday Tsai - who controls all non-voting shares and 49 per cent of the voting shares of Antenna, which holds 47.58 per cent of ATV - said that according to a shareholders' agreement the chief executive of ATV must be nominated by Antenna.

He said the idea to suspend Hu came from board member James Sheng, a relative of Wong who was recently made managing director. Three of the 10 board members are surnamed Sheng and only two were appointed by Tsai.

'Such a decision made by a board led by Sheng was not in the best interests of ATV and was against the shareholders' agreement. It appears ... James Sheng has been attempting to take over the management of ATV.'

The move follows ATV's application last month for changes to its shareholding structure.