HONG KONG, April 18 The board of China Huishan
Dairy Holding Co Ltd was left paralysed on Tuesday
after two executive directors resigned, leaving the company with
just two directors, embattled chairman Yang Kai and missing
finance director Ge Kun.
The dairy firm, whose shares have been suspended after an 85
percent drop in a single day last month, said that until more
directors were appointed, the current board could not act on
behalf of the company because it had too few members.
Huishan grabbed headlines last year when it sold and leased
back part of its herd. Its most recent troubles have exposed the
risks of excessive leverage and financial engineering in parts
of corporate China.
The firm's troubles spread last week when it said it had
received a warning of broken loan covenants from lenders and
that some of its assets had been frozen.
Huishan said in a filing on Tuesday Kwok Hok Yin had
resigned as executive director but remained employed by the
firm. So Wing Hoi has also resigned as an executive director and
as the company's chief finance officer for "health reasons".
"Yang Kai is taking such steps as practicable to identify
suitable candidates to fill such vacancies on the board but
given recent events, he may not be able to find suitable
candidates soon," the company said.
The troubled dairy said this month that five members of
senior management had quit in less than a week.
Executive director Ge Kun, who ran treasury operations for
the group, remains “uncontactable”, Huishan said. It has
previously filed a missing person report with Hong Kong police.
(Reporting by Twinnie Siu and Adam Jourdan; Editing by Edmund