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SoftBank’s Arm Fired Its China CEO – But That Doesn't Mean He's Leaving

• Ice_cream_suit 6y ago
  "The big shareholders of the venture—Arm and Hopu Investment Management Co.—voted to remove its chief executive officer, Allen Wu; under conventional theories of corporate governance, the shareholders get to do that. But Wu refused to go, and he had some powerful corporate governance theory on his side too. Specifically, in China, the legal representative of a company (Wu) controls the company seal, which is required to endorse corporate documents like, you know, the ones firing him. So as long as he hangs on to the seal they can’t get rid of him. "
  • mytailorisrich 6y ago
    It's not an uncommon occurrence in case of disputes. China has kept its ancient love for ink stamps and seals. Any sort of document gets stamped over there and that confers an immediate sense of validity and power to the document. I am sure that you can show up somewhere with a document signed by Xi Jingping in person only to be told "yes but it's not stamped."
  • DevKoala 6y ago
    This is surreal.
  • zhte415 6y ago
    Background on company chops used in China for anyone unfamiliar: https://www.china-briefing.com/news/company-chops-in-china/ https://www.china-briefing.com/news/company-chops-in-china/