
SoftBank’s Arm Fired Its China CEO – But That Doesn't Mean He's Leaving - Ice_cream_suit
https://www.bloomberg.com/news/articles/2020-06-20/softbank-s-arm-fired-china-ceo-wu-for-starting-competing-fund
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Ice_cream_suit
"The big shareholders of the venture—Arm and Hopu Investment Management
Co.—voted to remove its chief executive officer, Allen Wu; under conventional
theories of corporate governance, the shareholders get to do that.

But Wu refused to go, and he had some powerful corporate governance theory on
his side too.

Specifically, in China, the legal representative of a company (Wu) controls
the company seal, which is required to endorse corporate documents like, you
know, the ones firing him.

So as long as he hangs on to the seal they can’t get rid of him. "

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mytailorisrich
It's not an uncommon occurrence in case of disputes.

China has kept its ancient love for ink stamps and seals.

Any sort of document gets stamped over there and that confers an immediate
sense of validity and power to the document. I am sure that you can show up
somewhere with a document signed by Xi Jingping in person only to be told "yes
but it's not stamped."

