In response to the Urban Development (CDL), Executive Chairman Guo Lingming, publicly accused his eldest son and company president Guo Yizhi of attempting to “seize power”, Guo Yizhi issued a statement saying: “We have never wanted to remove our respected chairman.”

Guo Yizhi responded on Wednesday afternoon (February 26) that the decision of the group's chairman and a few board members to take such extreme actions against the size and posed issues of the board is “incredible and disappointing”.

“As CEO and board members, our focus has always been on implementing measures to improve corporate governance. As a majority member of the board and with the clear guidance and support of the company and independent legal counsel, we have been committed to improving corporate governance.”

Guo Lingming issued an open letter Wednesday morning accusing his eldest son Guo Yizhi of trying to “seize power” and said he had submitted documents to the court on February 25 to deal with the actions of Guo Yizhi, Li Yizhen, Deng Aiai and other directors who acted with them, trying to control the actions of the Urban Development Board.

Since January this year, Guo Lingming and Guo Yizhi have different opinions on the issue of appointing a new independent director. In early January this year, Li Yizhen and Deng Aiai reportedly bypassed the nomination committee and elected two new independent directors. Guo Lingming questioned the urgency of appointing new independent directors and stopped interviews for all new directors. However, in early February, the company appointed two new independent directors.

Further reading

Guo Lingming and his son looked at the major events in recent years of urban development

Guo Lingming and his son looked at the major events in recent years of urban development

Guo Lingming: Yang Lieguo and other directors firmly safeguard the highest standard of governance in urban development

Guo Lingming: Yang Lieguo and other directors firmly safeguard the highest standard of governance in urban development

Guo Lingming therefore asked Guo Yizhi to resign from his position as president in a company email on February 8 until he publicly accused him on Wednesday and submitted court prosecution documents.

“I reiterate that this action has never been to remove our respected chairman,” Guo Yizhi said. He said that measures to strengthen the board are purely to ensure that urban development can maintain consistent high standards of governance and to ensure that the collective decision-making process is as robust as possible.

“As the matter has been handed over to the court, we will not comment on the specific content of the case and will issue further announcements in the event of any significant progress,” he said.