Alibaba’s Jack Ma is giving up ownership of Chinese entities Tweet08 Oct 2018
Jack Ma is giving up ownership of VIEs & what it means, highlights from the SCMP article
In a securities filing in July, Alibaba Group disclosed that executive chairman Jack Ma will be stepping away from the company’s variable interest entities. This was disclosed about a month before Ma announced a succession plan with a transition period of a year.
“We are in the process of enhancing the structure we use to hold our variable interest entities so that we can better ensure the stability and proper governance,” Alibaba said in the filing, adding that the new VIE structure will “reduce key man risks”.
The investment holding company that will gain ownership of the VIEs is owned by two partnerships, each of which hold 50 per cent equity of the holding company. One partnership is a company formed by several members of the Alibaba Partnership and management, while the other partnership is comprised of the same group of people who will serve as limited partners.