Guolian Minsheng Securities (GLMS SEC, 01456) saw its stock price plummet by 5.14% during Friday's trading session, following announcements of significant changes to its corporate governance structure. The sharp decline suggests investors may be reacting with caution to the company's plans to abolish its supervisory committee and revamp its board of directors.

According to recent company announcements, GLMS SEC's board of directors has approved revisions to its Articles of Association, including the abolishment of the supervisory committee. The responsibilities of this committee will be transferred to an audit committee under the board of directors. This move aligns with recent changes in Chinese company law and aims to streamline the company's governance structure.

Additionally, GLMS SEC announced nominations for its sixth session of the board of directors, including a new executive director, four non-executive directors, and three independent non-executive directors. The proposed changes in leadership and governance structure appear to have sparked uncertainty among investors, potentially contributing to the significant drop in stock price.

As these corporate governance changes require shareholder approval, market participants will be closely watching the upcoming shareholders' general meeting. The stock's performance in the coming days may depend on how effectively the company can communicate the benefits of these structural changes and allay any concerns about potential risks associated with the new governance model.