Kekao Co., Ltd. (可靠股份), a Chinese listed manufacturer of hygiene products, has become embroiled in a significant corporate governance crisis following its board’s decision to remove independent director Jing Naiquan (景乃权). The company cited a loss of independence, dereliction of duty, and unprofessional conduct as grounds for dismissal, specifically pointing to Jing’s conduct during discussions about the compensation of major shareholder and director Bao Jia (鲍佳). Jing and Bao have both vehemently opposed the removal, labeling it as retaliatory and a challenge to China’s independent director system. This dispute exposes deep internal fractures within the company, stemming partly from the divorce of its founders, and raises broader questions about governance standards, investor protection, and regulatory oversight in China’s capital markets. The incident serves as a critical case study for investors assessing non-financial risks in Chinese equities.
Escalating Corporate Governance Crisis: Kekao Co., Ltd. Removes Independent Director Amid Internal Strife
