The holding group for Shanghai Richina Leather, Richina Pacific, has said it is to call a special meeting of shareholders in Auckland, New Zealand on April 2, 2003. The company, which also owns Mainzeal Construction and the Blue Zoo aquarium, Beijing, wants to remove director, Ming Lu, for allegedly obstructing a planned NZ$18.6 million ($10.4 million) one-for-one rights issue. (See leatherbiz.com. ‘Richina Pacific postpones rights issue’ - 14.02.03 and ‘Richina names the day for share issue’ - 29.01.03.)

Mr Lu, who represents 9.6% shareholder JP Morgan, has declined to sign the issue prospectus as he believes Richina should consider other ways of raising the cash, such as selling Mainzeal or Beijing Blue Zoo. He has also refused to resign. Under New Zealand law all directors must sign a prospectus before it can be issued.

Chairman, Alistair MacCormick said: “If the meeting approves the removal of Mr Lu as a director, the remaining directors plan to proceed with the rights issue without delay.”

The conference will also seek shareholder approval to enter into a NZ$5.5 million ($3 million) short term funding facility to finance the working capital requirements of its Shanghai Richina Leather operation.

For fiscal 2002, Richina posted a NZ$8.2 million profit and returns of 11.3 cents a share. Its China leather operation was the major contributor, providing 67% of the firm’s profit and increasing its revenues by 17% to $216 million.

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