What’s new: Two shareholder representatives have refused to support China Minsheng Banking Corp. Ltd.’s financial budget and profit distribution plans.
Zhang Hongwei and Liu Yonghao, who are also on the major Chinese bank’s board directors, abstained from voting on its 2020 financial budget plan at a Monday board meeting, according to an exchange filing (link in Chinese). Zhang hoped the plan to “cut costs and raise profits,” while Liu said there should have been “strengthened reform and governance,” the filing showed.
Meanwhile, Zhang voted against the Shanghai-listed bank’s profit distribution plan for 2019 to 2021. Liu, on the other hand, abstained from voting on its 2019 profit distribution plan, saying that there should have been better capital management.
What to watch next: The dispute between the directors and the bank’s management came ahead of a board reelection, increasing uncertainties for upcoming personnel changes.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.
Wu Hongyuran contributed to this report.
Contact reporter Tang Ziyi (ziyitang@caixin.com)
