Gome Electrical Appliances Holdings is set for a showdown with Huang Guangyu, its incarcerated founder, after saying it would convene a special meeting to seek shareholder support for current management.
In May, a Chinese court sentenced Mr Huang to 14 years in prison for insider trading and bribery. However, the Chinese billionaire remains Gome’s largest shareholder, with a 34 per cent stake, and has fought from behind bars to regain control of the Hong Kong-listed company.
This month, Gome announced Mr Huang had requested a special general meeting allowing shareholders to vote on whether Chen Xiao, his successor as chairman, and one other director should be removed from the board. The billionaire is proposing that they be replaced by his sister and an associate.