TAIPEI, Taiwan, June 22, 2012 /PRNewswire-Asia/ -- Taiwan courts today ordered the Board of China Petrochemical Development Corporation to reinstate the two independent director candidates that Chairman Shen and his Board disqualified in May. Two highly-qualified and well-respected independent nominees had been submitted by the group of shareholders owning over 30% of CPDC when Chairman Shen and the incumbent management abruptly added new documentation requirements just hours before the deadline. Chairman Shen and his Board disqualified all nominees on this basis, whilst admitting only its own candidates. CPDC's charter states that investors may only vote for candidates on the list approved by the company.
Following the disqualification, the group of shareholders fighting for shareholder rights and a balanced board at CPDC sought for a court injunction to restore its independent director candidates to the ballot, on the grounds that Shen's actions were illegal. Owing to the lengthy court procedures, the injunction order was not issued until today. The timing of the ruling is unfortunate, as it will likely disenfranchise numerous non-domestic investors, many of whom have already cast their votes through the electronic voting platforms.
This group of shareholders owning over 30% of shares in CPDC group believes that the ruling should be a wake-up call to proxy advisory services who find no fault with Shen. Glass Lewis asked global investors to support incumbent management, stating that the group did not provide 'evidence' of any wrong-doing by the Chairman. ISS also recommended that investors support management, stating that they have 'no significant concerns' with Chairman Shen's ability to lead the company. Both advisory services have a responsibility to advise their clients in good conscience, and as shareholders in CPDC we urge them to revise their recommendations now that the courts of law have ruled to reinstate our independent nominees for shareholder vote. The decision by the law courts in Taiwan clearly attests that the manipulation of the nomination process by Chairman Shen was an abuse of power and illegal.
As concerned shareholders in CPDC we politely and urgently call on all fellow investors in the company to re-examine any votes that they may have cast in support of Chairman Shen and his incumbent management, as we all wait to see if Shen will do the right thing by promptly honoring the court order and reinstating the two independent director candidates.
CPDC's Annual General Meeting will be held in five days on Wednesday, June 27th, 2012 at 9am. Shareholders still have the opportunity to consider voting for a balanced board and for reducing the power of a leadership that has consistently demonstrated its disrespect for the principles of corporate governance, CPDC shareholders and the legal process in Taiwan.
SOURCE Lea Lea Group