Citic unveils new board line-up
Citic has appointed its parent’s vice chairman Wang Jiong as its vice chairman and president, as part of wider top management reshuffle.
Citic, which last month completed the 227 billion yuan (HK$286 billion) acquisition of assets from parent Citic Group that saw 99 per cent of the group’s assets absorbed by Hong Kong-listed Citic, has appointed its parent’s vice chairman Wang Jiong as its vice chairman and president, as part of wider top management reshuffle.
President Zhang Jijing has been re-designated vice president of Citic, the central government’s first overseas investment arm, Citic said in a filing to Hong Kong’s stock exchange. The changes take effect on Friday.
Dou Jianzhong, currently executive director of Citic Group and chairman and chief executive of Citic International Financial Holdings, has been appointed an executive director and vice president of Citic.
Vernon Moore has resigned as an executive director and chief financial officer, after having been a director of Citic since 1990.
The CFO position will be taken up by Ju Weimin, who has resigned as non-executive director.
Carl Yung Mingjie, former chairman Larry Yung Chi-kin’s eldest son, has resigned as a non-executive director of Citic after having been a director of the firm since 2000. He is the last member of the Yung family, formerly a substantial shareholder of Citic, to resign from its board.
Larry Yung resigned in 2009, less than a week after Citic’s offices were searched by the Commercial Crime Bureau, and six months after the firm was criticised for delaying by six weeks announcing it faced a potential HK$15.5 billion loss from high-risk foreign-currency hedging trades.
He and five former directors are facing a law suit from the Securities and Futures Commission, which is seeking HK$1.9 billion in compensation for 4,500 investors who suffered losses due to their failure to report the massive foreign exchange exposure.
Citic said each of the directors who have resigned have confirmed they have no disagreement with the board and no matter relating to their resignations need to be brought to the attention of shareholders.
A new executive committee has been set up.
The committee is responsible for selecting suitable candidates for senior management, reviewing material investment plans and significant transactions and strategy planning.
It comprises of chairman Chang Zhenming, Wang, Dou, Zhang, Citic Group’s chairman of the supervisory board Zhu Xiaohuang, Citic Group’s party discipline inspection commission secretary Feng Guang, Citic Bank president Li Qingping and former Citic Securities vice president Pu Jian.
Meanwhile, Citic said in a separate filing to the stock exchange, it was “surprising” that its Australian business partner, Mineralogy, owned by Australian tycoon Clive Palmer, had issued a media release saying Minerology has served termination notices on its agreements with Citic on a major iron ore mining project cooperation.
“It is surprising that Minerology would take this action when the [Western Australia] Supreme Court is scheduled to hear an application at 3.30pm (Perth time) today for an injunction restraining Minerology from taking further steps in reliance on these and other notices issued by Mineraology,” Citic said.
Citic and Minerology are embroiled in a dispute that stems from a 2006 agreement in which Citic agreed to make a quarterly royalty payment to Mineralogy of A$0.30 (HK$2.27) per tonne of iron ore “taken” from areas where Mineralogy holds mining rights. The two firms were unable to agree on the way the royalty should be charged.
