This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ron Chan Issued Letter To ChinaCast Shareholders

Stocks in this article: CAST

SHANGHAI, April 2, 2012 /PRNewswire-Asia/ -- Ron Chan, ex Chairman and CEO of ChinaCast Education Corporation (NASDAQ: CAST) has today resigned from the board and issued the following letter to the shareholders:

Dear Shareholders,

I have resigned from the Board of ChinaCast Education Corp. today. I have come to this decision because of serious disagreements that I have with the group of directors who recently has come to control the Board and the Company.

After the election of Ned Sherwood's slate of directors at the annual meeting in January of this year, Mr. Sherwood, and persons acting in concert with him, which I believe to include Daniel Tseung, Derek Fang, funds managed by Fir Tree Partners, and other shareholders, acting in concert and in furtherance of a pre-existing plan, sought to and did take control of the Company.  They then acted to promote their own interests at the expense of the Company and its other shareholders.

For example, Mr. Sherwood's group pushed the Company for a settlement of $2.3 million with Ned Sherwood on his bogus claims against the management and the Company. When Michael Santos and I strongly objected to this settlement, we were essentially pushed out of the Company, notwithstanding our years of loyal and valuable service.  Although I remained on the Board, important decisions were made without any prior communication with me or with the senior management.  Without any proper authorization, Mr. Sherwood, purporting to represent the Board, instructed PRC management to take instruction directly from the Board (i.e. from Mr. Sherwood) and not from the executives (i.e. me). Without proper authorization, Derek Feng announced the removal of Mr. XY Jiang as President, China. Mr. Jiang has been with the Company for 11 years and has been a trusted employee and a partner holding 40% of the VIE company, CCLX.  I have been told that new Company management has been threatening Company employees and creating a hostile and terrifying atmosphere, rendering the Company largely dysfunctional.

In addition, I have personally been threatened by Mr. Sherwood's group with threats of bogus lawsuits, claiming that I have stolen Company property, have sabotaged efforts to complete the Company's filings in a timely manner, and have engaged in insider trading.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs