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Second largest shareholder of Shanghai Bestway suspected of contract fraud
Team Sea and Coast | 07/07/2020

The Shanghai Public Security Bureau Songjiang Branch gave a notice to Shanghai Bestway Marine & Energy Technology saying that the company’s second largest shareholder was suspected of being involved in contract fraud. The second largest shareholder of Bestway, Li Lu, holds 70,312,500 shares of the company.

Back in 2015 Bestway signed contract with Li for share issue and assets purchase in cash. The company bought 100% equity shares of Taizhou Jinhaiyun Marine Equipment Company from Li. Nevertheless, the forged operation status of Jinhaiyun caused huge loss of Bestway in recent years.

The company had taken some actions towards Li and relevant people earlier including internal audit in order to protect the benefits of the company and medium and small investors.

In February earlier this year Bestway was granted court approved restructuring and was hoping to improve its financial status and return to normal operations. It is hoped that investigation into Li will help Bestway to recuperate some of its losses.

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