Chinese electric appliances retailer Gome has published a notice stating the company has appointed its president Chen Xiao as acting chairman.
Gome says it received a formal notice from the Beijing police on November 27, 2008 that confirms Gome's chairman Huang Guangyu is under investigation for economic crimes. In addition, according to information from Gome, its chief financial officer is also under investigation for the same reason. Therefore, the company announced the above appointments in a report it published at the Hong Kong Stock Exchange.
Gome has established a special action committee to monitor and evaluate closely the influence of the investigation on its financial conditions and management. The committee will also be responsible for raising suggestions to Gome's board of directors about investor relations and actions related to the investigation.
Having completed an initial internal check, no misappropriation of assets or capital was found in the group. However, to be prudent, the company will hire an independent accounting firm to evaluate the risks of Gome Electrical Appliance and to check the company's relevant transactions in addition to the effectiveness of its internal control system.