LDK Solar’s audit committee chairman, Louis Tung-jung Hsieh, resigned his post yesterday for personal reasons, it has been revealed. Hsieh will be replaced by independent director Maurice Wai-fung Ngai, while Bing Xiang will step into the role of acting chairman of the audit committee of the LDK board in preparation for Ngai’s assumption of the chairman role. LDK Solar’s shares have sunk following news of the resignation.
Ngai joins the LDK Solar board as a Class I director whose initial term will expire on the date of the company’s AGM. However, he can be re-elected to the role for a duration of three years at this AGM.
The news as reported by Reuters outlines the underlying reasons behind and repercussions of the resignation, which may be linked to the recent resignation of Peter Mak from Trina Solar. The two resignations are likely to be linked to the July 11 report released by Moody’s Investors Services that specified 61 Chinese companies as having been ‘red flagged’ in terms of their corporate governance. LDK Solar is one of four named in the report as having more questionable operations than others, according to the Reuters story.
LDK’s chairman and CEO Xiaofeng Peng commented on Hsieh’s departure: “We are grateful to have Louis Hsieh as one of our independent directors and our AC chairman for the past several years. We have benefitted from his wisdom and insight in various areas of the corporate governance. The LDK Solar board wishes to acknowledge, with appreciation, the efforts and contributions Louis made to the company. We wish him well in his endeavours.”