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GOME reappoints Bain directors after eviction attempt

  • Paul Mackintosh
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The board of Bain Capital investee GOME Electrical Appliances reappointed Bain representative non-executive directors Jonathan Zhu, Ian Reynolds and Wang Li Hong after two significant affiliated shareholders voted against their reappointment at the company's AGM in Hong Kong.

The GOME board said in a statement that the two shareholders, with 31.6% of its outstanding shares, were able to vote down the reappointments despite the 62.5% shareholder turnout, with all other director reappointments gaining a large majority. After an emergency meeting, the GOME board then used its authority to reappoint all three. Zhu and Reynolds are MDs at Bain Capital Asia and Wang is a principal. GOME would have borne a liability of RMB2.4 billion ($352 million) penalty if their removal had been upheld. The GOME board statement said nothing on the two shareholders' affiliation, but reports indicate they may be connected to GOME founder Huang Guangyu, currently on trial in the PRC on bribery and insider trading charges.

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