Kelon's president Gu Chujun was arrested over the weekend for embezzling company money and Kelon's assets have been temporarily seized by the government.
The company will now be co-managed by CEO Liu Chongmeng and government representative Li Zhenhua.
CEO assistant Jiang Yuan and Vice CEO Yang Yousong were also arrested and charged with similar crimes.
Gu was arrested by the China Securities Control Commission at the airport as he arrived in Shunde from Beijing.
