Investigation into firm’s governance could last six months, with one analyst warning of damage to bilateral ties
“The Enterprise Chamber … acknowledges that Nexperia faced complex dilemmas due to geopolitical developments. However, this does not mean that an investigation should be omitted in this case,” the court said in its ruling, published on Wednesday.
It said it had decided to maintain Zhang’s suspension to allow the company to exercise firm leadership free from internal disputes and shareholder conflict, judging that Nexperia’s immediate priorities would be restoring stability, repairing internal relationships, securing its supply chain and ensuring reliable deliveries to customers.
The court-appointed temporary director would remain in place, and nearly all shares would continue to be held by a court-appointed administrator, it added.
The Enterprise Chamber would soon appoint two investigators to examine Nexperia’s governance from the end of 2023, as well as recent supply chain disruptions and the de facto split with Nexperia China since last October, according to the ruling.
In a statement, Wingtech expressed regret at the decision and vowed to pursue the restoration of its full shareholder rights “through all available legal means”. It said the court’s decision to maintain the temporary measures would continue to weigh on business, reiterating that it had still not been presented with any evidence justifying the actions.
Source: News - South China Morning Post
