Shanshui Cement wins injunction against former directors
Latest twist in a takeover battle involving company chops, seized corporate offices and plants, and bond defaults
China Shanshui Cement, embroiled in an increasingly complex takeover fight between its largest shareholder Tianrui Group and various ousted directors, has gained an injunction banning three former directors from using the alleged stolen official company seal of its main operating unit.
The unit, Shandong Shanshui Cement Group, however, is yet to make a new seal limiting the Tianrui-led board’s capacity to effectively control the operation.
The legal move represents the latest twist in the hostile takeover battle, that has so far involved missing company chops, seized offices and plants, and bond defaults.
“The company and Shandong Shanshui are negotiating with the People’s Government of Jinan city
and the police to issue a new seal as soon as possible,” China Shanshui said in a filing to Hong Kong’s stock exchange on Friday.
Officials claimed the seal being held by the former directors “without proper authorization“ is still being used by them “for disseminating false and misleading information to the public”.
China Shanshui said it has obtained a civil ruling from the Haidian District People’s Court of Beijing, prohibiting company founder Zhang Bin and his son Zhang Caikui — both former chairman at different times — and former executive director Chen Xueshi from using or authorising others to use the seal.
