Aug 17, 2012 05:23 PM

Troubled NVC Lighting Hit by Wave of Resignations


(Beijing) – Senior executives are quitting one after another from NVC Lighting Technology Corp., indicating a rift between senior management and the board of directors.

Liu Shuanglong, general manager of an NVC subsidiary in Zhejiang Province, resigned on August 16, the third senior member of management to quit since August 14.

"Without former CEO and chairman Wu Changjiang, NVC is like a ship with no captain," Liu wrote in a resignation letter.

He also said he is unsatisfied with the board of directors and investors.

The battle between the founder of China's largest lighting products manufacturer and its investors has been closely watched. Some investors have claimed weak corporate governance at the Chongqing-headquartered company and hinted at financial irregularities under Wu, who has resigned. Current NVC chairman Yan Yan, a partner at private equity firm SAIF, has indicated he would rather let the company's stock suffer than back down.

On August 14, Xu Fengyun resigned as vice president, chief operations officer for marketing and chief operations officer for large projects. On his microblog, Xu also said he was unhappy about the board of directors.

Independent director Karel Robert den Daas quit on the same day. He wanted Wu to return, but the board did not approve the request, an executive at the company who spoke to Caixin said.

"NVC is in a chaotic situation now and the board didn't approve my plan to save the company," den Daas wrote in a text message to an NVC employee. "I have no choice but quitting my job."

More executives will quit their jobs in the next few days, the executive said.

Wu wrote on his microblog that the resignation of den Daas was distressing. "He is a senior professional in the lighting business and has made lot of strategic suggestions for company's development."

Almost all main suppliers have stopped deliveries to NVC, the executive who spoke to Caixin said. Suppliers want Wu to return as chairman and changes to the management team. The company said 25 suppliers had stopped delivering materials.

The company's plant in Huizhou, Guangdong Province, stopped work on August 16 because of a shortage of materials, an executive at the plant said. Factories in Chongqing, Zhejiang and Shanghai will also have to stop production soon.

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