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Founder Yanzhong president resigns
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THE president of Shanghai-listed Shanghai Founder Yanzhong Science & Technology Group Co has resigned following a dispute with its parent company, in a case that highlights the sometimes tangled company relationships in China.
Zhu Jianqiu resigned his post as president on June 10, less than two weeks after he was fired from his post as vice-president of the parent company Peking University Founder Group Co.
Founder Yanzhong said in a published statement on Tuesday that its vice president and its assistant chief executive officer have also resigned .
In an interview with the Securities Times, Zhu said he resigned to put an end to the protracted dispute between the affiliate and its parent company and to help maintain the reputation of Peking University.
The affiliate and its parent company have been embroiled in a dispute over the composition of Founder Yanzhong's board. The parent company, firing Zhu in late May, accused Zhu of planning a proxy war.
But Zhu told state media it was within his power as the affiliate's president to recommend board candidates.
He also said it was awkward holding posts at both companies, since Founder Yanzhong shareholders and Founder Yanzhong's parent company sometimes had conflicting interests.
Founder Group owns only 3.7% of Founder Yanzhong but is its largest shareholder.
Founder Group also accused Founder Yanzhong of allegedly filing a misleading financial report, a charge the affiliate denies.
Hong Kong-listed Founder Holdings Ltd, which is also an affiliate of the parent Founder Group, has said it wouldn't be affected by the dispute. (SD-Agencies)
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