Frontier Investment Partners, one of the shareholders, has won an injunction to ban Grand City Capital Investment from reselling or dealing with shares it bought from Frontier Investment's director Zhang Ziyan.
Frontier pointed out that Zhang resigned as a director in July last year and did not have authority to represent the company to make any transactions. The firm added that it did not know about the transaction until Grand City revealed it at a special shareholders' meeting on April 16.
Grand City said it did not have intention to conceal the transaction and pointed out that Frontier could not provide evidences to prove that Zhang already resigned. But it agreed not to resell the shares and intervene in HKA's daily operations before the court proceeds with the case.