China Shanshui: Asia Cement files derivative claims in Cayman Islands

By Caroline Salls

Pittsburgh, Sept. 11 – China Shanshui Cement Group Ltd. was served with a writ of summons on Sept. 6 in the Grand Court of the Cayman Islands under which Asia Cement Corp. and 11 of its wholly owned subsidiaries filed a claim against Tianrui Group Co. Ltd. and 14 past and present China Shanshui directors on the behalf of the company.

According to a news release, in addition to Tianrui, the defendants named in the summons include Li Liufa, Li Heping. Stephen Liu Yiu Keung, David Yen Ching Wai, Godwin Hwa Guo Wai, Chong Cha Hwa, Ng Qing Hai, Angela Ho Man Kay, Cheung Yuk Ming, Law Pui Cheung, Wong Chi Keung, Ching Siu Ming, Lo Chung Hing and Yu Chun Liang.

China Shanshui said the derivative action is substantially similar to and includes many of the same allegations as a petition filed against the company in June in the Court of First Instance in the High Court of the Hong Kong Special Administrative Region.

Those allegations include misconduct by the former/present directors and breaches of the listing rules, the Hong Kong Code on takeovers and mergers and fiduciary duties.

The company said that its board is seeking legal advice and that the company strictly reserves its rights in connection with the claims.

The board does not currently believe that the derivative claims affect the operation of the company in any significant way.

China Shanshui is a cement manufacturing company based in Jinan, China.

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