Upheaval on the board, prompted by concerns about ongoing losses and questionable financings, appears to have caused the organizational structure of China Tontine Wines to unravel, with resigned executives taking control of a number of subsidiaries on departure. With trading suspended, shareholders may not have a way out of their own.
With thousands of companies holding shareholder meetings during proxy season, it’s hard to know where to start. Glass Lewis’ Controversy Alert service can help, identifying the most crucial meetings globally and allowing investors to make better informed voting decisions with the latest information in hand.
In this post, we provide a roundup of the meetings taking place this week that were previously highlighted by Controversy Alerts, and look deeper into the situation at China Tontine Wines. To get alerted ahead of time, get in touch and sign up for Glass Lewis’ Controversy Alert service.
Controversy Alerts June 15 — June 21, 2025
- 6/16 China Communications Construction Company Limited (Controversy Alert issued 5/29)
- 6/18 China Tontine Wines Group Limited (issued 5/29)
- 6/18 Coinbase Global, Inc. (issued 6/3)
- 6/18 CrowdStrike Holdings, Inc. (issued 6/3)
- 6/18 Delivery Hero SE (issued 6/3)
- 6/18 KGHM Polska Miedz (issued 6/3)
- 6/19 JDE Peet`s N.V. (issued 6/3)
Deep Dive: China Tontine Wines Group Limited
It’s been a tumultuous year for China Tontine Wines. Concerns around ongoing losses, lack of dividends, frequent placements, and perceived mismanagement led to the rejection of all resolutions at the 2024 AGM, including the reappointment of director Vincent CHENG, chairman of the audit committee and the board’s financial expert. The board replaced two of the failed directors but reappointed CHENG anyway, presumably because his expertise was required to facilitate a pending placement, covering roughly 10%of the company’s share capital, to Gaoyu Securities Limited.
Weeks later, major shareholder Bon Voyage Development Limited called a special meeting to remove five directors and appoint five new ones. At the special meeting, shareholders approved all proposals to remove incumbents and appoint new nominees – with CHENG and one other targeted incumbent having already resigned at the start of September, a day before trading in the company’s shares was suspended.
More upheaval followed, with three executive directors, four non-executive directors and the company secretary resigning in November, along with three senior officers. The resigned officers cited disagreements with the board's involvement in the company's core wine business, persistent internal conflicts, and a dominant leadership style that discouraged opposing views and hindered open dialogue. Except for the joint company secretary, who provided limited documentation, none of the resigned officers participated in handover procedures.
This murky transition may have been a factor in the December transfer of an equity interest at the demand of a creditor, which was completed without the knowledge or prior approval of the board; as well as the deconsolidation and transfer of multiple subsidiaries (some of which had not been previously disclosed in the company’s filings) that appear to now be controlled by the recently resigned executive directors. Despite repeated requests, the company has been unable to obtain information from former executive directors regarding the financial and operational impact of these unauthorised transfers. External auditors have issued a qualified opinion on whether the financial statements present a true and fair view of the Group's financial position, and trading remains suspended.
Looking for More?
Don’t wait until the vote deadline has passed. Glass Lewis’ Controversy Alert service allows you to leverage the local market expertise of our highly knowledgeable research teams to identify the significant ESG votes that really matter for your organization ahead of time.
Receive crucial controversy alerts during the height of proxy season, fully integrated into our Viewpoint voting platform, so you don’t miss important votes. Our timely alerts are designed to provide the details you need to understand the biggest controversies at a glance, giving you time to analyze and take action through voting and engagement. You can read about the methodology, or click here for a sample.
