Concord Medical Services Holdings Ltd (NYSE:CCM), a healthcare provider specializing in cancer care, imaging diagnosis, and research and development, has terminated a voting proxy arrangement with a group of non-controlling shareholders, the company disclosed in a filing with the Securities and Exchange Commission today.
The arrangement, which had granted Concord Medical's subsidiary, Shanghai Medstar, the shareholders' voting rights, was dissolved effective Wednesday.
The voting proxy had been in place with five non-controlling shareholders of Concord Healthcare Group Co., Ltd., a subsidiary of Concord Medical that is traded on the Main Board of The Stock Exchange of Hong Kong Limited under the ticker 2453.HK. This move comes after Concord Healthcare's H shares were listed on the HKSE on January 9, 2024, a significant milestone for the company that was previously communicated to the public.
According to the filing, the termination of the proxy agreement was reached through mutual negotiation in good faith between Shanghai Medstar and the shareholders, known collectively as the Proxy Granters. The decision to end the voting proxy arrangement was made without providing further details on the reasons behind this change in the shareholder agreement.
Concord Medical's announcement is based on a press release statement.
The termination of this agreement marks a change in the governance structure of Concord Healthcare, potentially altering the dynamics of shareholder voting power within the company. However, the specific implications for the company's future decision-making processes and corporate governance remain to be seen.
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