Zotye Shareholder Proposes Removal of Two Directors Amid Deepening Governance Dispute

[Corporate Governance] Internal conflict at Zotye Automobile escalates as a shareholder proposes the removal of two directors.

Key Development: Shareholder Counters Directors' Move to Oust Chairman

Shareholder Hou Tu Land, holding 2.55% of shares, has proposed removing directors Wang Yian and Zhong Yufei, accusing them of unilaterally initiating a proposal to remove the chairman of the board, thereby disrupting the board’s decision-making order. Previously, the two directors jointly submitted a proposal to remove chairman Han Biwen, which failed to pass with 3 votes in favor and 6 opposed.

Strategic Context: Governance Disputes Intensify Trust Crisis

Hou Tu Land claims the involved directors “breached their duties of loyalty and diligence,” while Wang Yian countered that the proposal was based on “factual inaccuracies and lacked legal grounds.” Xu Mingzhe, who had originally been targeted for removal, has voluntarily resigned, prompting Hou Tu Land to withdraw its proposal against him.

Industry Impact: Turmoil Heightens Uncertainty Over Zotye’s Recovery

Zotye Automobile has been mired in operational difficulties in recent years, and this internal strife further undermines governance stability, potentially affecting strategic execution and market confidence.