Despite prevalent news of the incarceration of Gome Electronics' CEO, Huang Guangyu, Bain Capital believed they attentively undertook due diligence before making a significant investment in the company. The venture capital firm was confident that along with the current management, it could work collectively to revamp the bundles of China's leading electronic retailer.
Yet, it did not anticipate the power Huang had behind bars. As the majority investor, Huang has managed to manipulate shareholder assemblies and current direction choices and structure. Did Bain Capital merely find itself in a distinctive situation or typical of an investment in China? What can prospect supervisors learn from this situation about corporate governance and ethical rules of company in China?
PUBLICATION DATE: August 05, 2011 PRODUCT #: 312025-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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