Battle for Gome ends in a draw; more battles to come

The chairman is safe, but Gome's biggest shareholder prevents dilution and says he will take legally appropriate action to protect his interests -- in other words, he will fight on.
Huang Guangyu
Huang Guangyu

“There will be unwanted changes for Gome if Mr Huang's proposal doesn't win the vote, and we will take legally appropriate actions to protect the founding shareholder's interest,” Zou Xiaochun, Gome Holding's corporate lawyer, told FinanceAsia in an interview last week.

That threat looks set to become a reality after shareholders rejected Gome founder Huang Guangyu's bid to oust the company's current chairman Chen Xiao at a general meeting yesterday afternoon.

At a quick glimpse, the battle over Hong Kong-listed Gome Electrical Appliances is merely another fight for control of a company. However, the friction has uncovered the tip of the China capitalism iceberg when it comes to how the country’s once-highly-praised...

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