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I’m not saying this development is good, but didn’t ARM UK / SoftBank lose control of ARM China 3 years ago when they sold 51% of it and became a minority share
by evancox100 5y ago
I’m not saying this development is good, but didn’t ARM UK / SoftBank lose control of ARM China 3 years ago when they sold 51% of it and became a minority shareholder? Not being in control comes along with the minority shareholder status. The fact that ARM China CEO refused to step down is kind of irrelevant, the remaining 51% shareholders could just replace the board with whomever and install whomever they want as CEO. While this would require a unanimous vote by the other shareholders, I think it is just a technicality that this hasn’t already happened.
Still, you have to wonder if ARM China is still sending SoftBank 49% of the profits! Or if they’re just like “what profits”. This whole saga with the corporate seals and everything is hilarious. Actually giving the JV access to the RTL (== keys to the kingdom) has to be the dumbest move ever.
Also, goes without saying that none of this happens without the implicit consent of the CPC.
Disclaimer: opinions my own.
- colinmhayes 5y agoThe entire board voted with SoftBank to kick this dude out. He literally refuses to step down. There would have to be a lengthy court battle which the board doesn't want.
- amelius 5y agoBecause Chinese law allows what dude was doing, a court battle would have been futile.
- onethought 5y agoBut the Chinese ownership could replace the board, right?
- joshuaissac 5y agoARM HQ and Chinese fund Hopu tried jointly to replace the CEO of ARM China who is refusing to step down. The ARM China board voted 7-1 to fire him but he controls the company seal.
- nl 5y agoIn China, control of the physical company seal means control of the company. The board voted 7-1 to replace him but he refused to hand it over, and used court proceedings to draw out the subsequent legal case until he was in defacto control. The details are in the article.
- onethought 5y agoBut the board can create a new seal?
- nl 5y agoNo they can't.
- stevespang 5y agoWell, at least the ARM Mothership has refused to send any of the new chip designs over the China wall . . . all ARM China has got is old stale garbage now.
- ssss11 5y agoFor every western JV in mainland China the local Chinese partner owns 51% It’s been that way for ages, you don’t get allowed to do business there otherwise