China Oriental directors appeal against SFC ruling

In an unusual move, the independent non-executive directors of China Oriental Group have appealed against a decision by the Securities and Futures Commission over a dispute between the mainland steel product maker and its second-largest shareholder, ArcelorMittal, the world's biggest steel producer.

"It's not common for a Hong Kong-listed company to appeal against [the] SFC. Unless there is evidence suggesting the regulator was not working in a proper way, the company will normally not appeal," said Raymond So Wai-man, a dean of the business school of Hang Seng Management College.

The SFC did not respond to queries from the South China Morning Post.

On September 1, the independent directors of China Oriental appealed against an SFC ruling that ArcelorMittal need not make a mandatory general offer for China Oriental shares.

"The independent non-executive directors do not agree with the conclusion of [the SFC]," China Oriental said last Friday.

The SFC announced its ruling on August 21.

Vijay Kumar Bhatnagar, a non-executive director of China Oriental who heads ArcelorMittal's business in China and India, disagreed with the actions of the independent directors, China Oriental's announcement said.