• Chinese billionaire Jack Ma recently agreed to give up control of Ant Group as part of changes to the fintech’s corporate structure.
• The adjustment to the Ant Group’s respective shareholders‘ rights will see „the founder, representative of our management and employees exercising their voting rights independently.“
• Once the adjustment process is complete, no shareholder including Ma will „enter into any form of concert party arrangements with any other party“ or „seek control over Ant Group alone or jointly with any other party.“
Chinese billionaire Jack Ma has recently agreed to give up control of Ant Group, a leading fintech company. The adjustment to the Ant Group’s respective shareholders‘ rights will see „the founder, representative of our management and employees exercising their voting rights independently.“ This will ensure that no single shareholder will have control over the company and that the economic interests of the shareholders and their beneficiaries will remain unaffected.
The changes to the corporate structure will not alter or adjust the shareholders‘ respective economic interests and is being implemented to further enhance the stability of the corporate structure and sustainability of the company’s long-term development. Once the adjustment process is complete, no shareholder including Ma will be able to enter into any form of concert party arrangements with any other party or seek control over Ant Group alone or jointly with any other party.
The move by Ma was prompted by the Chinese regulator’s decision to investigate Ant Group’s compliance with laws and regulations and to impose fines as necessary. Ant Group had already suspended its plans for a $37 billion IPO in November 2020 due to regulatory scrutiny. The changes being made to the corporate structure are seen as an attempt by the company to appease the Chinese authorities and to avoid any further fines.
Despite the changes to the corporate structure, the Chinese authorities are still expected to impose fines on Ant Group for its alleged violations. However, the company hopes that the move to dilute Ma’s shareholding and voting rights will help to appease regulators and avoid further sanctions.