NVC taking emergency measures after CEO refuses to step down

Chinese lighting manufacturer NVC Lighting Holding Ltd said on Wednesday it was taking emergency measures following its CEO's refusal to step down after its board of directors adopted a resolution urging him to quit.

NVC alleges CEO Wu Changjiang secretly signed licensing agreements on behalf of a company subsidiary. NVC did not disclose any details of the deals.

In a statement to the Hong Kong Stock Exchange, NVC said Wu "unreasonably and without legal basis" refused to comply with the board and his actions are having an adverse effect on the company.

NVC said it was declaring an "emergency situation," and that a previously announced three-member emergency committee was now empowered to act on behalf of the board.

Shares in NVC, worth $714.5 million by market value, were suspended indefinitely on the Hong Kong Stock Exchange on August 11. The company is due to hold a shareholder meeting in Hong Kong on August 29, where investors will vote on a resolution to remove Wu from NVC.

Wu vigorously denied allegations of any wrongdoing on his Weibo on Wednesday. Wu's assistant said he was too busy to comment directly, following repeated telephone calls and messages seeking comment.

This is the third time Wu has quit or faced removal from his role as head of NVC, whose shareholders include $3.5 billion Chinese private equity firm SAIF Partners and French electrical systems supplier Schneider Electric SE.

NVC said in its statement it was suspending operations in Southwest China's Chongqing Municipality and establishing a temporary headquarters in Huizhou, South China's Guangdong Province.

The company alleged earlier this month that in 2012, Wu licensed NVC brands on behalf of a company subsidiary for a 20-year period, without informing or seeking permission from the board of directors.

Wu has deep ties with NVC. In the prospectus for the company's IPO in 2010, he was listed as a founder having served as chairman, CEO and as an executive director. He is currently the fourth-biggest shareholder of NVC, with a 2.6 percent holding, according to Thomson Reuters data.

The executive first resigned in May 2012, before being re-appointed on a three-year contract in January 2013. He also resigned in 2005 following a disagreement with shareholders.