A Case Study the Fighting for Control Power and Equity Ownership of Gome Electrical Appliances

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A Case Study: The Fighting for Control Power and Equity Ownership of GOME Electrical Appliances Group
1.Introduction1
1.1.Introduction to GOME Electrical Appliances1
1.2.Introduction to Huang Guangyu1
1.3.Introduction to Chen Xiao1
2.The Whole Story of Fighting for Control Power and Equity Ownership of GOME Electrical Appliances2
3.Analysis of corporate governance and agency problems of GOME4
3.1.In the transition period, the conflict in the concept of corporate governance from private enterprises4
3.2.The power of the Board is overtaken5
3.3.No Board of Supervisors5
3.4.The lack of long term incentive mechanism5
3.5.The lack of a standardized system for employing5
4.Conclusion5

1. Introduction
1.1. Introduction to GOME Electrical Appliances
GOME Electrical Appliances Holding Limited (国美电器 in Chinese) is one of the largest privately-owned electrical appliance retailers in Mainland China and Hong Kong. It was founded by Huang Guangyu, a Chinese businessman, in Beijing in 1987. It was listed on the Hong Kong Stock Exchange in 2004. As of 2008 Huang is the chairperson, the controlling shareholder, and the director.

1.2. Introduction to Huang Guangyu
Huang Guangyu, the former chairman of Gome Group, is currently serving a 14-year jail sentence for fraud. Career:
1987 - 1997 general manager, Gome Group
1997 - 2002 president, Beijing Eagle Investment Corporate
2002 - 2009 chairman, Gome Group

1.3. Introduction to Chen Xiao
Mr. CHEN Xiao, is the former Chairman and an Executive Director of the Group. Nov. 2006 -May 2007 President of Gome Group
May 2007 - Nov. 2008 President and executive Director of Gome Group Nov.2008 -Jan. 2009 Acting Chairman of Gome Group
Jan. 2009- Mar. 2011 Chairman of Gome Group

As early as in September 1996, Mr. Chen, as one of the founders, set up the group of Yongle (China) Electronics Retail Company Limited, which was merge by Gome...
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