MINORITY shareholders in Hong Kong-listed arm China Cosco Holdings are reportedly canvassing for the 10 per cent stockholder support needed
Cosco chairman Wei under pressure to step down after 2nd big annual loss
MINORITY shareholders in Hong Kong-listed arm China Cosco Holdings are reportedly canvassing for the 10 per cent stockholder support needed to call an emergency general meeting to remove company chairman Wei Jiafu.
The shareholders revolt, which comes after a profit warning from China Cosco Holdings of a coming full-year net loss of US$1.5 billion, is being led by Zhang Yuanzhong of the Beijing Wentian Law Firm.
Analysts had already been predicting a loss of CNY7 billion (US$1.25 billion) for 2012 following a CNY10.4 billion loss. Under the Shanghai Stock Exchange's "three strikes you're out" rule for A shares, a net loss in 2013 would mean de-listing.
In September, Capt Wei and 2i/c Ma Zehua won plaudits from investors after they said they would work for nothing until they turned a profit. Last year Capt Wei was named the fifth most influential person in shipping in the TradeWinds Power 100.
