Four independent directors of milk producer China Huishan Dairy Holdings have quit following the company’s 85% drop in its value last Tuesday at the Hong Kong Stock Exchange – worth more than $4 billion — and the disappearance of a senior financial executive. By Russell Flannery.
Each of the four “has confirmed that he has no disagreement with the Board and there is no matter related to his resignation that needs to be brought to the attention of the shareholders of the Company,” Huishan stated in an announcement on Friday evening.
One of Huishan’s remaining board members, executive director and top financial official Ge Kun, has “lost contact” with the company since March 21, when she wrote to Huishan’s chairman saying “recent work stress had taken its toll on her health, that she would take leave of absence and does not want to be contacted at this time,” according to a Huishan statement on March 28. Huishan in the same statement disclosed it had been late in repaying some loans and was seeking financial support from the government.
Huishan also said on Friday it expects the process of clarifying its financial position will continue “for some more time” due to this week’s tomb-sweeping holiday.
Chairman Yang Kai was worth $3.1 billion on March 20 before Huishan’s stock tanked on March 21 and trade was then suspended.