Li You, former CEO of the Founder Group, speaks at a meeting in Beijing on March 19, 2010. [Photo/CFP]

In a separate development, Founder Group announced on its website on Monday night that four company executives are under investigation, including board members Wei Xin, Li You and Yu Li.

Li Guojun, vice-president of the group and younger brother of Li You, is also reportedly under investigation; both are said to have connections to Ling Jihua.

Founder Group was established in 1986 by Peking University, with 70 percent of its total shares held by PKU.

The announcement from Founder Group also said the company's board of directors has elected three new members to replace those who are under investigation.

The three new members－Huang Gui Tian, Meng Qing Yan and Wei Jun Min－all have a Peking University education or working background.

Caijing.com.cn quoted insiders as saying the move will be better for the stable management of the group and also for the investigation.

The announcement also said the changes have not affected the company's operations.

"It is still hard to define the seriousness of the case," Caijing.com.cn quoted legal staff as saying.

The move to find replacements so quickly suggests the case may not be simple, the staff said.

Founder Group gained close attention from the public for the recent long dispute with Beijing Zenith Holdings.

He Na contributed to this story.