The board of China Huishan Dairy Holding Co Ltd was left paralysed on Tuesday after two executive directors resigned, leaving the company with just two directors, embattled chairman Yang Kai and missing finance director Ge Kun.
The dairy firm, whose shares have been suspended after an 85 percent drop in a single day last month, said that until more directors were appointed, the current board could not act on behalf of the company because it had too few members.
Huishan grabbed headlines last year when it sold and leased back part of its herd. Its most recent troubles have exposed the risks of excessive leverage and financial engineering in parts of corporate China.
The firm's troubles spread last week when it said it had received a warning of broken loan covenants from lenders and that some of its assets had been frozen.
Huishan said in a filing on Tuesday Kwok Hok Yin had resigned as executive director but remained employed by the firm. So Wing Hoi has also resigned as an executive director and as the company's chief finance officer for "health reasons".
"Yang Kai is taking such steps as practicable to identify suitable candidates to fill such vacancies on the board but given recent events, he may not be able to find suitable candidates soon," the company said.
The troubled dairy said this month that five members of senior management had quit in less than a week.
Executive director Ge Kun, who ran treasury operations for the group, remains "uncontactable", Huishan said. It has previously filed a missing person report with Hong Kong police.