The Audit Committee of A-Power Energy Generation Systems, Ltd. has completed an internal review that confirmed assertions made by NASDAQ, relating to the omission of certain biographical information of Edward Meng, which was corrected in BVI company’s filing in July 2008. A letter written to NASDAQ from Mr. Meng’s former employer stated that he had breached that company’s Code of Conduct by being employed by that company on a full-time basis while at the same time being employed by A-Power as its part time CFO. After some deliberations and multiple consultations with NASDAQ, the Board of Directors of the BVI company determined that the appropriate response would be immediate termination of Mr. Meng’s employment.
By words of Jinxiang Lu, Chairman and Chief Executive Officer of the BVI-based A-Power, company’s internal audit determined that while Mr. Meng’s other position did not present a competitive concern and did not have any effect on his performance in the company, this information should have been disclosed. He noted that Mr. Meng has been an important member of their management team, who played a critical role in A-Power’s transition to a US public company, in the growth of distributed generation business, and in the startup of BVI company’s wind turbine production business.
Meanwhile, John Lin, A-Power’s Corporate Secretary, Chief Strategy Officer and member of the Board of Directors, has been appointed Interim CFO while the search for Edward Meng’s successor is continuing.