Minibus maker Brilliance China, whose share price has plunged recently, has replaced its president, chairman and key shareholder Yang Rong who departed mysteriously, the Financial Times (FT) said.
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Yang is being investigated over suspected asset-stripping within the complex Brilliance group and the investigations have lapsed while authorities consider their findings, the FT said, adding that officials had told it that Yang could expect more questions.
The FT said Yang remains a director of the company he founded in the early 1990s, and Brilliance has denied that he was being investigated, but has not explained why China’s third-richest man has not answered media questions since reports this month caused a fall in the share price.
According to the FT, company executives, briefing analysts in Hong Kong, said the board had removed Yang because his goals and views were no longer in line shareholders#; but no explanation of the differences was given.
Other members of the board have been promoted, the FT added.
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By GlobalData
But the newspaper added that the company seemed to be sound as Brilliance executives hinted that a stalled joint venture with BMW was close to approval by Chinese authorities.
The two companies have been waiting approval for well over a year, the FT said, adding that the reason for the delay from China’s State Council was unclear and that approval would mean official approval for the company despite investigations into individuals.
The Financial Times said the official investigations included examining why Yang, one of China’s most respected businessmen, did not carry out in full an internal 1999 finance ministry decree that ordered the transfer of the 55% stake in Brilliance then held by the foundation to Zhongjin Fengde, an asset management company owned by China#;s finance ministry.
