UC RusAl Could Lose Director Cheung
- The Moscow Times
- May. 24 2013 00:00
- Last edited 15:27
An investigation into fraudulent activity on the Hong Kong Stock Exchange could see UC RusAl lose its independent director, Barry Cheung.
Sual Partners, who own 15,8 percent of aluminum giant UC RusAl, believe that Cheung should be asked to disclose the level of his involvement in a number of financial transactions.
Cheung took an abrupt leave of absence from his role as chairman of the Mercantile Exchange, which lost its license on May 18 and stopped trading over the weekend due to the "irregularities".
Police arrested three men in connection with the fraud on Wednesday, though they are not thought to have links with Cheung, reported Bloomberg. The ongoing investigation has focused on the manipulation of accounts by those with ties to management.
UC RusAl's shareholders are due to meet on June 14 to re-elect seven directors, as the current board's contracts are coming to an end.
However, a source has revealed that "while legal proceedings are ongoing it is too early to draw any conclusions".
Directors are appointed for a fixed period of up to two years, though they may be invoked by the shareholder who nominated them. As Cheung received multiple nominations, the process is less simple and any exit would likely be brought about through his voluntary resignation.
The company's other major shareholders Onexim and EN+ have declined to comment on the matter.