An investigation has been launched into the causes of a mass resignation of directors at two Australia-listed Chinese agricultural companies, according to Reuters. One of the firms is citrus grower Dongfang Modern Agriculture Holding Group Ltd (DFM.AX), whose entire board unexpectedly resigned in June, without any explanation. Something similar happened at a second company, Bojun Agriculture Holdings (BAH.AX), a processed fruit manufacturer, which is also under investigation. The company claims that the resignations of its two Australian directors and company secretary in June were due to a “miscommunication” between directors.
The two similar cases raise serious questions regarding the large number of Chinese companies seeking listings in Australia to avoid regulatory hurdles at home.