China Art Financial (HKG:1572) said receivers of about 1 billion shares held by its shareholder Intelligenesis Investment have requested the appointment of two directors to its board, according to an exchange filing.
The shares, charged to Zhongtai Financial Investment and subsequently transferred to Win Win International Strategic Investment Funds, represent about 59.17% of the company's issued shares.
The company said it is seeking professional advice and will make further announcements on any material developments.
Shares of the firm were down over 10% in Friday morning trade.