The jailed founder of Gome Electrical Appliances Holding has threatened to terminate commercial agreements with the company if shareholders reject a motion to sack senior management, in the latest salvo in an intense lobbying campaign by both sides ahead of a special general meeting on September 28.
Huang Guangyu, once ranked as China’s richest man, has a 34 per cent stake in the Hong Kong-listed retailer and is attempting to reassert control, even as he serves a 14-year prison sentence for insider trading and bribery.
Earlier this month, Gome agreed to Mr Huang’s request for a shareholder vote on the removal of Chen Xiao, Gome chairman, and another director. In the contest with its founder, Gome is backed by Bain Capital of the US, which will take a 10 per cent stake in the company and vote against the resolution.