GOME reaches understanding with Huang

According to GOME's announcement on the HKSE website, Shinning Crown nominees Zou Xiao Chun and Huang Yan Hong, Huang's sister, will be added to the board, subject to shareholder approval, with the number of board seats being enlarged to 13 to accommodate them. The parties have also agreed not to terminate GOME's business agreements with private companies in the mainland still answerable to Huang. "Entering into this MoU and ensuring the stable development of the business will best serve the interests of the Company and shareholders as a whole," GOME's public statement ran. "Both parties also recognize that by enlarging the board and giving the major shareholder commensurate representation, the company's future strategy can now be debated and determined in a constructive and consensual manner." 

This MOU apparently brings to an end the series of disputes between Huang and his allies and the current GOME board, as well as Bain Capital, which saw Huang in May attempt to evict Bain board members including MD Jonathan Zhu.

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• Topics
• Greater China
• Consumer
• Regulation
• Bain Capital Asia
• Jonathan Jia Zhu