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  • August 2011 (Revised October 2015)
  • Case
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Boardroom Battle Behind Bars: Gome Electrical Appliances Holdings—A Corporate Governance Drama

By: William C. Kirby and Tracy Yuen Manty
  • Format:Print
  • | Language:English
  • | Pages:15
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Abstract

Despite widespread news of the incarceration of Gome Electronics' CEO, Huang Guangyu, Bain Capital felt they carefully undertook due diligence before making a significant investment in the company. The venture capital firm was confident that it and the current management could work together to revamp the fortunes of China's leading electronic retailer. However, it did not anticipate the power Huang had behind bars. As the majority shareholder, Huang managed to manipulate shareholder meetings and current management decisions and structure. Was this typical of an investment in China or did Bain Capital just find itself in a unique situation? What can future managers learn from this situation about corporate governance and ethical rules of business in China?

Keywords

China; Legal Aspects Of Business; Corruption; Risk; Corporate Governance; Crime and Corruption; Power and Influence; Risk Management; Business and Shareholder Relations; Venture Capital; Ethics; Governing and Advisory Boards; Governing Rules, Regulations, and Reforms; Values and Beliefs; Private Equity; China

Citation

Kirby, William C., and Tracy Yuen Manty. "Boardroom Battle Behind Bars: Gome Electrical Appliances Holdings—A Corporate Governance Drama." Harvard Business School Case 312-025, August 2011. (Revised October 2015.)
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About The Author

William C. Kirby

General Management
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Related Work

    • April 2014
    • Faculty Research

    Boardroom Battle Behind Bars: Gome Electrical Appliances Holdings—A Corporate Governance Drama

    By: William C. Kirby and Erica M. Zendell
    • August 2011 (Revised October 2015)
    • Faculty Research

    Boardroom Battle Behind Bars: Gome Electrical Appliances Holdings—A Corporate Governance Drama

    By: William C. Kirby and Tracy Yuen Manty
Related Work
  • Boardroom Battle Behind Bars: Gome Electrical Appliances Holdings—A Corporate Governance Drama By: William C. Kirby and Erica M. Zendell
  • Boardroom Battle Behind Bars: Gome Electrical Appliances Holdings—A Corporate Governance Drama By: William C. Kirby and Tracy Yuen Manty
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