The Ontario Securities Commission has accused the chief executive and chairman of Chinese clothing maker Zungui Haixi Corp. (TSXV:ZUN) of failing to co-operate with the company’s audit committee and special committee in dealing with concerns raised by the firm’s auditors.

The provincial regulator also accused chief executive Yanda Cai and chairman Fengyi Cai on Tuesday of obstructing an independent investigation by the special committee and failing to co-operate with the commission.

“To date, staff has not received any communication, directly or indirectly, from Yanda Cai or Fengyi Cai and none of Zungui, Yanda Cai or Fengyi Cai has facilitated production of the documents or records requested by staff,” the regulator said in a statement of allegations.

The regulator also accused the company of not maintaining an audit committee and failing to final its audited annual financial statements on time.

The allegations, which will be dealt with at a hearing on November 23, have not been proven.

Fengyi Cai owns or control a 56.8% stake in Zungui. Yanda Cai and Fengyi Cai live in China, while Fengyi Cai also maintains a residence in Hong Kong.

The Ontario regulator suspended trading in Zungui shares on the TSX Venture Exchange earlier this year after Ernst & Young LLP suspended its audit of the 2011 financial year results for Zungui Haixi earlier this year and advised the audit committee that an independent investigation of financial results was warranted.

The independent directors of the Canadian stock market-traded shoe and clothing maker later resigned in protest, along with the firm’s chief financial officer.

The independent directors told the regulator that they weren’t assured of funding or co-operation for an internal investigation.

The troubles come in the wake of allegations about financial irregularities against other companies that operate in China but trade on Canadian stock markets, including tree plantation operator Sino-Forest (TSX:TRE).

Zungui Haixi raised $39.8 million in its initial public offering in December 2009 on the TSX Venture Exchange.