(Yicai Global) June 10 -- A recent board resolution to remove Allen Wu from his chief executive position at Arm China has no legal grounding as the board meeting was not convened correctly, the chip firm said in a statement today.

Wu is still in charge of the company and remains its legal representative, Arm China said in response to non-majority shareholder Arm Group saying it would replace him. Arm Group wants to put Ken Phua and Phil Tang in place as co-CEOs of the joint venture to replace Wu in his roles of chairman and CEO, 21st Century Business Herald cited the parent as saying today.

Arm Group, the SoftBank Group unit whose chip architecture is used on 95 percent of the world’s smartphones, has been battling with Chinese investors over control of the company, a source close to Arm China said. Hopu Investment Management and other Chinese investors hold the majority 51 percent stake in Arm China. Arm Group holds 49 percent.

Arm China is continuing to operate as normal, the unit said, highlighting that it is an independent entity in China and will operate in line with local laws. In the statement, it renamed itself Arm Technology China.

Editor: James Boynton