Companies

Gome to vote on moves by Huang

(Agencies)
Updated: 2010-08-24 15:41
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Gome Electrical Appliances Holdings Ltd, China's second-biggest electronics retailer, has scheduled a special general meeting for Sept 28 to vote on what the company calls an irrational resolution by jailed founder Huang Guangyu, the Financial Times reported Tuesday.

Huang is waging a campaign to unseat the company's chairman, Chen Xiao, who steered the company through a crisis after Huang was arrested by police early last year, according to the report.

Gome said a proposal by Huang to oust the chairman was "not rational" and should be rejected by shareholders, according to a Bloomberg report on Tuesday.

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Chen said in an interview with Bloomberg that Huang brought the company close to bankruptcy and "Gome managed to resurrect itself due to the efforts of the existing management," Chen said.

Gome urged investors to oppose Huang, who is its largest stockholder at 34 percent, according to data compiled by Bloomberg.

Huang, who wants to cancel a general mandate to issue new shares, also wants to install one of his sisters as chairman, according to the Financial Times' report.