Tracking: Wu Changjiang was re CEO or because of gambling and other acts

The evening of August 8th, NVC (02222.HK) announced that the board has passed a resolution to chief executive Wu Changjiang recall positions, and will convene the EGM, removal of duties of executive director Wu Changjiang. NVC's board of directors said that the resolution is very difficult, but also very cautious".

NVC is a shareholder of the direction of economic observer said, was overwhelmed by the board dismissed reasons, or because of Wu Changjiang individuals suspected of gambling, owed a huge debt due. "Recently informed a number of misconduct Mr. Wu Changjiang, people questioned its ability to continue to serve as executive director responsibilities, NVC said.

In addition, the NVC board of directors that Wu Changjiang may have promised, and are investigating.

Wu Changjiang recently told that most of the members of the board, which in 2012 on behalf of NVC Affiliated Companies, Huizhou NVC lighting, and other three companies (NVC Shandong, Chongqing en Weixi industrial and Zhongshan love the holy land division lighting) signed a license agreement for each. Wu Changjiang said that the license granted three companies use NVC brand rights for a period of 20 years.

"Before the majority of the members of the board is not aware of the existence of the so-called license agreement, nor the board of directors approved, authorized or ratified any such agreement signed," NVC said, if any three brand companies abuse the company or the Affiliated Companies's name, trademark or other intellectual property rights, the company will take all necessary legal actions to defend the interests of the company and its shareholders.

According to the Shandong Provincial Administration for Industry and Commerce of the main market credit information publicity system information display, Shandong NVC Development Company Limited was founded in March 2008, the registered capital of 10 million yuan, the investor Zhu Shankuan, Li Guanmin, had wings, Chen Min, the legal representative for the wings. 2009 Wu Changjiang mother-in-law of its 4 million 800 thousand yuan capital injection, becoming the largest shareholder of the company, accounting for the proportion of up to 48% shares of. According to the company's official website, Shandong NVC Development Co. Ltd. for the "NVC NVC" the biggest production base of north.

According to the Economic Observer reported earlier, in 2009, Wu Changjiang decided to build a NVC Industrial Park in Rongchang County of Rongchang. Local leaders promised to give enterprises a relatively large concessions, as well as the allocation of land to Wu Changjiang for production and construction. Wu Changjiang find two natural person shareholders, invested 30 million yuan, registered in Rongchang Envici Industrial and Commercial Bureau. This two shareholders, one called Liu Xiang, another is Wu Xianming, one of Wu Xianming Wu Changjiang's father-in-law, Envici holds a 49.67% stake.

On the surface, en Weixi and Wu Changjiang didn't what relevance, but in fact from the company is registered and established, NVC is en Weixi industrial supporting and setting, reflected in NVC's announcement, NVC is the largest en Weixi Traders Association, also is the base of Chongqing suppliers. A en Weixi equity allocation of shareholders meeting minutes showed in October 20, 2011 that Wu Changjiang chaired the equity allocation, en Weixi 40% stake owned by Wu Xianming, 24% of the shares owned by Liu Xiang, 20% of the shares to 6% stake to Wang Shaoling, Ye Yong, Chen Jinlong and Yu Youqiang respectively to obtain 5% of the shares, the largest shareholder of Wu Xianming.

In July 2011, en Weixi's legal representative is changed from Liu Xiang to Chen Jinlong; in October, the legal representative and en Weixi change to the general manager of NVC R & D system Wang Shaoling. At present, the company's investment Li Guanmin, Zhu Shankuan, and so on, the legal representative of the company,. The three person can be said to be the original cast of Shandong nvc. In 2012, Li Guanmin also through the daily economic news publicly expressed support for Wu Changjiang, according to reports, Lee Min irrigation said, as long as the Wu Changjiang to come back, Schneider management exit, the other is to say. The report also showed that Wang Shaoling and Wu Changjiang are classmates, Wang Shao Ling before a company has been the acquisition of nvc.

And another company mentioned in the announcement, Zhongshan holy love Lighting Co., Ltd., was established in March 20, 2008, the registered capital of 1 million yuan, the investor Zhao Yanchao. In April 20, 2010, NVC and Zhongshan love the holy land division Lighting Co., Ltd. signed the agreement, under the agreement, NVC will grant registered trademarks of their love of the holy land division companies. According to the daily economic news reporter found that the holy land division of love is actually a private control of Wu Changjiang's mother-in-law, holding 40.93% of the company's equity in the company, the company is in charge of the company's private ownership of the shares of the company, the company's private ownership of the company, the mother of the company in charge of the company's private ownership of the company, the. According to the latest business information, there are two companies in the holy land division of shareholders Zhu Shankuan and Li Guanmin. As a result, Wu Changjiang and the three companies involved in the announcement has a source of confusion and has been entangled so far.

Notice that Mr Wu Changjiang 's misconduct has raised questions about his ability to continue to perform his duties as an executive director of the company as an appropriate and proper person. At the same time, the three vice presidents -- Wu Changjiang's younger brother Wu Changyong, following Wu Changjiang Mu Yu's 12 year old, Wang Minghua also faces the same question.

The announcement also shows that the company will release a further announcement at the appropriate time, and after further investigation, to take action to clarify the misconduct mentioned earlier. During the trading of shares of the company will continue to be suspended. The company has set up an emergency committee set up by Wang Donglei, Xiao Yu, Wei Hongxiong, in an emergency state of affairs, on behalf of the board of directors internal restructuring exercise, the appointment of managers, signed business agreements and other staff