The Special Shareholders' Meeting of
Ruixing was convened Lu Zhengyao, Li Hui and other directors' removal proposal was passed
At 15:00 on July 5, Ruixing Coffee held a special shareholders meeting to vote on whether to remove Lu Zhengyao, Li Hui, Liu Erhai and Shao Xiaoheng from their positions on the board of directors. The Beijing Youth Daily reporter learned that the meeting voted to dismiss the directors of Lu Zhengyao, Li Hui, Liu Erhai and Shao Xiaoheng. At the same time, the meeting voted to add two independent directors, Ying Zeng and Jie Yang.
The Beiqing Daily reporter learned that this is the second round of Lu Zhengyao and the opposition represented by investors fighting for control of Ruixing Coffee's board of directors. Except for Lu Zhengyao, the directors who will be dismissed at this special general meeting are those who participated in and supported the investigation of Ruixing’s fraud, including the chairman of the special investigation committee of Ruixing, and the independent director Weng Xiaoheng. It was these people who had previously proposed the removal of Chairman Lu Zhengyao.
On July 2, Ruixing Coffee held a board meeting at 21:00 on the same day to review the removal of the positions of director and chairman of Lu Zhengyao. However, the matter was not approved because it was not supported by more than two-thirds of the directors. Lu Zhengyao continued to serve as the director and chairman of Ruixing Coffee. This made the two camps within Ruixing clear.
The Beiqing Daily reporter learned that, in fact, the Ruixing Special Shareholders' General Meeting had issued a notice as early as June 19, which was to fulfill the requirements of the shareholders' meeting 15 days in advance. It can be seen that this special meeting of shareholders has long been in Lu Zhengyao's plan and directly selected the node that has been stuck for 15 days.
The workshop believes that the reason why Lu Zhengyao is anxious to carry out a major cleaning of Ruixing's current board of directors on July 5th is related to his imminent loss of the status of actual controller. According to British Virgin Islands court documents, on July 6, there will be two liquidation cases related to Ruixing Coffee. If the liquidation proposed by Credit Suisse as the plaintiff is supported by the court, then about 40% of the shares of Rui Xing held by Qian Zhiya and Lu Zhengyao through the trust will be owned by Credit Suisse and other investment banks. Lu Zhengyao loses its super voting rights and loses Swiss Fortunately, the identity of the actual controller.
In addition to clearing Lu Zhengyao's "dissidents", the special shareholders meeting will also discuss joining two new independent directors, Ying Zeng and Jie Yang. There was news in the workshop that the two new independent directors were also Lu Zhengyao's "own people". This may allow Lu Zhengyao to have the right to speak after leaving the core of Ruixing's rights.
On April 2, Ruixing Coffee exposed its financial fraud and inflated sales by about 2.2 billion yuan. On May 12, Ruixing Coffee announced the adjustment of the board of directors and senior management. CEO Qian Zhiya and COO Liu Jian were suspended, and they were asked to resign as directors. They have received their resignation letters. In addition, Director and Senior Vice President Guo Jinyi of Ruixing is acting CEO.
On July 1, the Ruixing Special Committee released an internal investigation result: Ruixing started to fabricate transactions in April 2019. Net income in 2019 increased by about 2.12 billion yuan, and the company's cost in 2019 increased by 1.34 billion yuan. Evidence shows that the company's former CEO Qian Zhiya, former COO Liu Jian and some employees who reported to them were involved in fabricated transactions, and the two have been dismissed. In addition, according to the investigation results, the board of directors also required Lu Zhengyao to resign as director and chairman. Text/Reporter Zhang Xin