Yan Iron Fist refuses Wu Changjiang return

Abstract: Wu Changjiang of the common sense of the card and Yan tough showdown will NVC lighting inside the bucket pushed to the edge of the marching. NVC Lighting (02222.HK), which has been suspended for about one months, issued a notice saying that Wu Changjiang's practices against corporate governance had not been fully clarified

Wu Changjiang Not according to the common sense of cards and Yan tough showdown will NVC lighting infighting pushed to the edge of marching.

NVC Lighting (02222.HK), which has been suspended for about one months, said that because Wu Changjiang breaches of corporate governance had not been fully clarified, "the Board considered it inappropriate to appoint Mr. Wu (Wu Changjiang) as chairman and director of the company." Yesterday after the resumption of the card, NVC shares fell 28.37%.

Shutdown, management group resignation, supply and marketing MPF Stop single, under the pressure, the investors still refused NVC founder Wu Changjiang back to the company, at the company's strength and not to challenge the authority of the Board to compromise. Yan, the founding partner of NVC Asia and the incumbent chairman of the "Godfather of investment", is once again showing an iron fist.

At this point, there is almost no room for compromise, the next development, will be the last brutal hand-to-hand combat.

Wu Changjiang yesterday to the "first financial daily" that will apply for convening NVC special shareholders ' meeting, "I will exercise my rights."

And NVC an insider last night revealed to this newspaper, according to the exact news confirmed that Yan investment 5 million Yuan hired and June Venture consulting company for its strategy, and will hold a press conference today.

Yan has planned a series of "Wu Changjiang" for the people, the person said.

Enumerating Wu Changjiang counts

From July 12 Board of Directors and management of Chongqing meeting, NVC experienced a factory shutdown, supplier MPF, dealers stop orders, such as a few twists and turns, management and suppliers, distributors, the purpose is to hope that "spiritual leader" Wu Changjiang return. But their wish has been dashed.

NVC Lighting said that it was not appropriate to appoint Wu Changjiang as chairman and director of the company in contravention of the code of listed companies.

The bulletin points out several "counts" of Wu Changjiang. One is the bundle of interests. During the first IPO of NVC lighting, Wu Changjiang helped some employees and distributors to buy a large number of shares, and employees and distributors remitted the money into his private account. In addition, Wu Changjiang has received personal loans from dealers, Wu said these loans are he to the dealer to introduce a business opportunity in return.

The second is land self-interest. As NVC lighting in Chongqing Wanxian set up production base, access to a real estate in Wanxian to develop a preferential opportunity. Wu Changjiang the opportunity to the NVC real estate company without having informed the Board. Wu Changjiang's wife was previously a shareholder of the company. Wu Changjiang said his wife has recently transferred all rights and interests in NVC real estate.

The third is the relocation of headquarters. The board had previously approved the relocation of one of NVC's sales companies to Chongqing, Wu Changjiang the NVC lighting "part of the Headquarters" (including the CEO's office, some human resources, law, domestic sales and marketing, procurement, research and development, finance) from Huizhou, Guangdong, to Chongqing, and signed the relevant contract documents with the local government. In this respect, Wu Changjiang argues that the only letter of intent signed with the government does not have any substantive legal obligations.

The other is related transactions. Prior to this, NVC lighting and the Holy Land of Love, Chongqing Enlin, Shandong NVC, Chongqing, the West four companies have carried out related transactions. As of August 7, 2012, The Holy Land Love, Chongqing Enlin, Shandong NVC three companies about 24.4 million yuan did not timely payment to NVC lighting. In addition, as of June 30, 2012, Chongqing en-latitude West about 25 million yuan has not been repaid NVC lighting. Wu Changjiang has pledged to urge the remainder of the payment as soon as possible.

Temporary takeover of three-person group

Schneider's withdrawal from management is also a NVC internal voice. In this respect, NVC lighting announced that two senior executives from Schneider Leary, Li Yunyu have resigned. But the announcement does not indicate whether NVC CEO Zhang Kaipeng from Schneider is in office.

NVC Lighting said that July 27 the company has been set up by the Executive Director, Vice President Muyu as President, Vice President Minghua and vice President and Chief Financial Officer Shang Three Provisional Management Committee, to ensure the company's sustained and stable operation.

According to the requirements of the shutdown staff, NVC Lighting said that any increase in the salary of any staff will be reviewed by the HR department according to the company's salary level, and the company will not take any accountability measures for the employees involved in the strike.

August 10, due to the lack of a timely response to the board, NVC suppliers to stop the supply of NVC. NVC Lighting said that Wanxian and Huizhou plant a total of 50 core raw materials suppliers, only 25 said the future will no longer supply NVC. It is expected that the existing stock of the plant will be sufficient to maintain production for a period of time, and if it cannot be solved, the company shall seek suitable replacement suppliers

So what about the NVC 36 operations centres that have a close relationship with Wu Changjiang? NVC Lighting said that 36 level dealers had temporarily ceased to send orders to NVC, but from July 28 onwards, all dealers resumed to NVC issued orders. If 36 operations centers do not cooperate, NVC will look for another level of distributor or direct cooperation with level two distributors.

The competition between family management and rule of law management?

However, the NVC turmoil is still not over. Wu Changjiang yesterday said the board had "no evidence" of his accusations, "I will use my shareholder rights to do what I should do." "includes the application for the holding of a company's provisional shareholder meeting.

36 Operations Centers provide 60% NVC orders. "We support Wu Changjiang's forcible return," said a NVC core dealer yesterday. As to whether it will speed up the launch of the new brand, he said, "Take one step and one step at a glance".

And a Lei Shi supplier yesterday learned that Wu Changjiang return was blocked said, will supply to NVC, but must be cash to buy, "dare not first goods, no knowledgeable people to do will have the risk."

NVC through the press release that this storm is not a contradiction between shareholders, but the rule of law and family management of the contest, and that normative management is conducive to the long-term development of the company.

Wu Changjiang to be challenged for his means

NVC's attitude is to accuse Wu Changjiang of the unconventional means of seeking a return.

In a well-known international management consulting company 20 years of the beginning of nine variable group managing director Lin Zhaoxian that, not that listed companies can not be used in family-style management, the prerequisite is that corporate governance is transparent and can be monitored. No matter how NVC is now, the only long-term solution is to return to corporate governance, transparent monitoring of the track.

"No one can influence the operation of the company, who is the boss." Lin Zhaoxian said that if the power of the party today to win the Battle of management, but not to solve the company's transparency, the rule of law, then the problem will be even greater.

Judging from this turmoil, NVC is a company with bad governance, the board of Directors is not able to exercise its rights. If senior management believes that they are being improperly charged, they can solve the problem through normal procedures and not use unusual means.

Lin Zhaoxian that the company is owned by all shareholders, if the encounter is not smooth, directly affect the company's production operations, then the interests of small shareholders who to protect? I have no doubt Wu Changjiang innocence, but I do not accept his means of dealing with things. ”

Moreover, Lin Zhaoxian also thinks, even if Wu Changjiang comes back, the future NVC still difficult to develop well. Because the board is difficult to make scientific decisions, Wu Changjiang can still hijack the supply chain to sway the board's decisions.

"The wind cannot be long. Lin Zhaoxian said that the Chinese securities market to cultivate enterprises, enterprises are looking for the way to survive, grow up, if this way to be recognized, the Chinese enterprises, the Chinese economy is very big damage.