BEIJING, Nov. 16, 2011 /PRNewswire-Asia/ -- VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), one of China's largest out-of-home digital television advertising networks on mass transportation systems, today announced its Board of Directors (the "Board") has, by way of formal resolution, given a vote of confidence in support of the Company's co-founder, chairman and chief executive officer, Mr. Limin Li.
The Board's resolutions come in response to a letter contained in a press release dated November 15, 2011 issued by two of the Company's shareholders, Oak Investment Partners XII, L.P. ("Oak") and Gobi Partners, Inc. ("Gobi"), both of which received common shares of the Company as part of the Company's acquisition of Digital Media Group Company Limited ("DMG") completed in January 2010, and, both of which are currently engaged in litigation with the Company in the Supreme Court of the State of New York related to that acquisition.
The letter from Oak and Gobi was addressed to the Board of VisionChina Media and alleged that the chairman and chief executive officer of the Company, Mr. Limin Li, has mismanaged the Company and requested that the Board make major changes in the Company's management, including the replacement of Mr. Limin Li.
It was also noted that Oak and Gobi disseminated their letter to the Company's Board through a public press release even before such letter was received by certain directors. The Board believes the contents of the letter and the public nature of its release have negatively affected the reputation of the Company and its management team as well as the Company's daily operations, which could cause irreparable damages to the Company and its shareholders.
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