By appointing the one person committee who is also the board member that represents the the 13% Xin Hua interest, the directors under questions have sent an extremely bad message to the other DMA shareholders and the market at large.
To my mind their position on the board have
become compromised and untenable as they would always be percieved to be pandering to the wishes of Xin Hua.
Their future board decisions will always attract a perception(fair or otherwise) that perhaps Xin Hua played a role in their decision making processes. This is highly undesirable state of affairs for the other shareholders who would really never know if their interests are being looked after.
Conversely from Xin Hua's point of view, they could be seen to be exerting influence beyond their 13% holding. Consequently it can be viewed that Xin Hua is trying to effect control of DMA through its control of the board without paying premium for take over control.
I would urge all fair minded DMA holders to vote out the board members in the upcoming EGM.
They afterall have little skin in the game and ceding effective control of company to Xin Hua would not materially affect them though it is a very different story for share holders.
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