July 18 (Bloomberg) -- LDK Solar Co., a Chinese maker of solar cells, said the chairman of its audit committee resigned and the company plans to replace him with a new independent director. The shares sank as much as 7.2 percent.
Louis Tung-jung Hsieh resigned from LDK’s board yesterday, LDK said today in a statement. Hsieh, who is president and chief financial officer of the Beijing-based New Oriental Education & Technology Group, said today on a conference call he resigned from LDK’s board “for personal reasons,” effective June 30.
The departure follows the resignation July 12 of the audit committee chairman at another Chinese solar company, Trina Solar Ltd. LDK was among 61 Chinese companies cited by Moody’s Investors Service in a July 11 report as having “red flags” about their corporate governance. The report singled out LDK and four other companies as “negative outliers” with more warning signs than the others.
LDK dropped 41 cents, or 6.3 percent, to $6.11 at 11:52 a.m. in New York Stock Exchange composite trading, after falling as much as 47 cents earlier. The shares are down 40 percent this year.
Hsieh will temporarily be replaced as head of LDK’s audit committee by another director, Bing Xiang, and the company appointed a new independent director, Maurice Wai-fung Ngai, who is expected to take over the post permanently.
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