FAW Group waives controlling shareholder rights in Changchun Faway Automobile Components

Shanghai (Gasgoo)- FAW Group is no longer the controlling shareholder and actual controller of Changchun Faway Automobile Components Co.,Ltd (Faway), who has no controlling shareholder and actual controller at present, according to Faway's recent response to an inquiry letter filed by Shanghai Stock Exchange on November 16.  

Faway released an announcement on November 16 saying that a decision agreed on its second extraordinary general meeting of the year allowed the structure of board of directors to be revised. Based on the company's updated bylaw, the number of board members has been reduced from 9 to 7, among which members nominated by FAW Group declined to 2 from 5. 

On the same day, Shanghai Stock Exchange issued an inquiry letter regarding the above matters.

Up until now, FAW Group, Faway's biggest shareholder, controls 20.14% stake in the Changchun-based subsidiary. The second largest shareholder Changchun FAWSN Group Co.,Ltd and the third largest shareholder, a state-owned investment company in Jili Province, hold 5.16% and 4.81% stake respectively in Faway. However, the stakes owned by other shareholders were all below 4%. Thus, Faway stated that none of shareholders can produce vital effect on the company's resolution due to the relatively decentralized equity structure, which makes the company no longer be a state-holding enterprise.