A Case Study the Fighting for Control Power and Equity...

A Case Study: The Fighting for Control Power and Equity Ownership of GOME Electrical Appliances Group 1. Introduction 1 1.1. Introduction to GOME Electrical Appliances 1 1.2. Introduction to Huang Guangyu 1 1.3. Introduction to Chen Xiao 1 2. The Whole Story of Fighting for Control Power and Equity Ownership of GOME Electrical Appliances 2 3. Analysis of corporate governance and agency problems of GOME 4 3.1. In the transition period, the conflict in the concept of corporate governance from private enterprises 4 3.2. The power of the Board is overtaken 5 3.3. No Board of Supervisors 5 3.4. The lack of long term incentive mechanism 5 3.5. The lack of a standardized system for employing 5 4. Conclusion 5†¦show more content†¦But at the same time Bain raised three non-executive directors, and appoint an independent director. Sep. 2010, there were 11 directors in the Board of Gome. And distribution of power is showed as follow: Chen Xiaos Group: Chen Xiao and Sun Yiding; Bains Group: Zhu Jia, Wang Lihong, Ian and Thomes; Huangs Group:Wu Jianhua and Chen Yusheng; Other: Wang Junzhou, Wei Qiuli and Shi Xiping; Dec. 2010, the number of directors expended to 13 in the Board of Gome. Zou Xiaochun and Huang Yanhong were in the board so that Huangs Group grew to 4 persons 3. Analysis of corporate governance and agency problems of GOME 1. 2. 3. 4.1. In the transition period, the conflict in the concept of corporate governance from private enterprises Gomes battle showed that familial governance on behalf of the major shareholder , in the post-crisis era of China, still dominate with the preponderant and stead position, and cannot be shake in the short-term in the private enterprises. Private enterprises must mix familial governance and corporate governance, give administration and supervision authorities the moderate authorization and reasonable incentive and restraint mechanisms. 4.2. The power of the Board is overtaken Modern