China Resources said there is no agreement with -Baoneng Group to jointly expand their voting power in China Vanke Co, and there is no cooperation with Baoneng either, financial news portal cnstock.com reported on Thursday, in response to the Shenzhen Stock Exchange's enquiry.
"We are not supporting Baoneng Group in its proposal to oust the board of Vanke," China Resources said via social network platform WeChat on Thursday, noting that it will consider reorganizing the board for the benefit of Vanke.
Baoneng said on Thursday it proposed to oust the board of Vanke to solve its messy corporate governance problem and give all shareholders a chance to nominate the board of directors and supervisors in a public and fair way, financial news portal stcn.com reported on Thursday.
"We respect the current management's contribution to Vanke and we sincerely hope talented staff will stay," Baoneng said.
As for the ongoing disputes, some staff members planned to send a petition to Shenzhen authorities, with a scroll reading "unreasonable ouster of Vanke's management undermines its culture," domestic news portal ifeng.com reported on Thursday.
The managers of Vanke said they persuaded those employees to drop the idea, and they will maintain the normal operation of Vanke, said the report.
Shenzhen Jushenghua and Foresea Life Insurance, Vanke's shareholders and also units of private developer Baoneng Group, have called for an extraordinary general meeting to dismiss Wang Shi and the rest of the board, according to a statement posted on an official information disclosure website cninfo.com.cn on Monday.
"The proposal by the shareholders of China Vanke to remove the company's directors and supervisors is credit negative and, if it materializes, could pressure its rating or outlook," Moody's Investors Service told the Global Times via e-mail on Tuesday.
On Monday, Vanke held a shareholders' meeting in Shenzhen, South China's Guangdong Province.
At the meeting, both the Director's Report and the Supervisor's Report for 2015 were rejected, yicai.com reported on Monday.
Between July and August 2015, Baoneng Group spent more than 40 billion yuan to acquire 24.29 -percent of Vanke's shares, becoming its largest shareholder.
China Resources is the second largest shareholder of Vanke.
