Founder of China’s Gome Loses Key Vote
Huang Guangyu, the imprisoned former chairman of Gome Electronics, has apparently lost the power struggle to maintain control over the company. From Caixin:
Four proposals by Huang Guangyu, the imprisoned founder and the largest shareholder of Gome Electrical Appliances Holdings, were rejected by a special shareholder meeting on Tuesday, and Chairman Chen Xiao will continue to run the listed company, Caixin learned.
On Aug. 4, Huang demanded a special shareholder meeting and a vote on the removal of Chen.
Analysts say a higher shareholder turnout for the vote meant a better chance for Chen to stay, due to the shareholding structure. Huang and his family hold a 32% stake in the appliance retailer, institutional investors have about a 45% stake, and retail investors, a 6% stake.
Huang and his family have won over two major shareholders, bringing the stake by the shareholders on their side to a combined 35.7% stake. For Chen to stay as chairman of the board, he had to win support from stakeholders with at least a 35.7% stake. Institutional investors were largely quiet about their attitudes on the vote.
Read more about Huang Guangyu via CDT.