The latest information shows that the fight around Beijing Bit is heating up. One party tried to remove the company’s belongings, while the other party recovered and put a seal on the items. But the screenshots of the pulse show that the negotiations between the two sides seem to be progressing.
The two founders of Bitmain competed for control of the company, and there was a new change.
The dispute over the legal representative of Beijing Bitmain has gone through three cycles in one year:
In October 2019, he changed from Zhan Ketuan to Wu Jihan, but because Wu Jihan’s shareholder resolution for industrial and commercial changes was flawed, it was revoked by Zhan Ketuan for administrative reconsideration.
In May 2020, the legal representative of Beijing Bitmain changed back to Zhan Ke Tuan again.
In the middle, there were incidents of grabbing mining machines and mining farms…
On September 14, 2020, Beijing Bitmain changed again, and the legal representative changed from Zhan Ketuan to Wu Jihan.
Wu said the article on Blockchain said that on the morning of September 15th, the Zhan Ke Group held an all-hands meeting, and the Beijing Aobei Science and Technology Park and the Shenzhen factory were urgently transferring materials.
1. Why can Wu Jihan regain his position?
Article 13 of the “Company Law” stipulates that the legal representative of a company shall be the chairman, executive director or manager in accordance with the company’s articles of association.
The articles of association of Beijing Bitmain stipulate that the executive director shall be the legal representative of the company.
And who is the executive director is determined by the shareholders.
There is only one shareholder of Beijing Bitmain, that is, Hong Kong Bitmain holds 100% shares, and Wu Jihan is the authorized representative of Hong Kong Bitmain.
Therefore, Wu Jihan can represent Hong Kong Bitmain and make decisions as a shareholder of the Beijing company. Wu Jihan serves as the executive director of Beijing Bitmain and becomes the legal representative in accordance with the company’s articles of association.
The escalation of the Bitmain war, the analysis of the role of the two legal representatives
2. Why was Wu Jihan’s superiority revoked last time?
This issue was previously analyzed by the “equity road” because the shareholder resolution Wu Jihan took to make the change was flawed, and it was revoked after Zhan Ketuan went to apply for administrative reconsideration.
In the battle for control of Bitmain, Wu Jihan’s legal representative was revoked, and the reason was finally found
3. Can Wu Jihan be able to sit firmly this time?
Wu said the blockchain article said that the recording showed that Zhan Ketuan has repeatedly emphasized that this change is an abuse of administrative methods and abuse of power in Haidian District to interfere in civil cases.
The “equity road” has analyzed this issue before, and it is only natural for Wu Jihan to request the change of legal representative, because Wu Jihan can make decisions as a 100% shareholder of the Beijing company.
The escalation of the Bitmain war, the analysis of the role of the two legal representatives
Although Zhan Ketuan is the former legal representative, he cannot prevent shareholders from deciding to replace the executive director and legal representative.
If the predecessor can block the change, but Wu Jihan represents 100% shareholders who cannot make the change, then it is really possible to be interfered as Zhan Ketuan said?
Wu said the blockchain article said:
Zhan Ketuan’s strategy is still similar to the previous one. It is to find the formal differences in Wu Jihan’s behavior, such as whether he has made an online application and whether the signing time is correct.
But the mistake Wu Jihan made last time, will he make it again this time?
If Wu Jihan made no mistakes here, the probability that Zhan Ketuan could request cancellation is extremely low.
In fact, even if Wu Jihan really makes another mistake, he can still issue a no problem shareholder resolution again and make changes.
4. What is the impact of the ongoing multiple lawsuits?
The Planet Daily article stated that Zhan Ke’s team filed a request to confirm that the shareholder decision signed by Wu Jihan on behalf of Hong Kong Bit on October 28, 2019 was not established ((2020) Jing 04 Min Chu No. 497).
The previous article of “Equity Road” said that even if Zhan Ketuan won the lawsuit, Wu Jihan’s position would not be shaken.
Because Wu Jihan can represent the Hong Kong shareholders who hold 100% of the Beijing company, even if there is a problem with a shareholder resolution, he can still make 1 billion shareholder resolutions without problems. Then, isn’t Zhan Ketuan going to fight 1 billion lawsuits? Made a fortune with lawyer fees…
The article also said that Wu Jihan’s lawsuit against the previous administrative reconsideration was suspended for the fifth time, and he had to wait for the outcome of the civil lawsuit (2020) Jing04 Minchu No.497.
Bamboo wants to say that this lawsuit has nothing to do with the overall situation, because now it is a new change. Even if Zhan Ketuan wins the lawsuit, it will not change the outcome.
The key is: whoever can control the Hong Kong company can decide the affairs of the Beijing company.
Why does Zhan Ketuan first apply for administrative reconsideration? Instead of going to court?
(1) Regarding the first change, Zhan Ketuan had already filed a lawsuit in the court at the beginning of November 2019, and applied for an administrative response on November 7, 2019, and went to the court to withdraw the lawsuit one week later.
(2) The time for administrative reconsideration and litigation is different
The Administrative Reconsideration Law requires that a decision be made within 60 days after acceptance, and can be extended up to 30 days with the approval of the person in charge.
The Civil Procedure Law stipulates that the first instance is concluded within 6 months, and can be extended for 6 months with the approval of the president; there are 3 months after the judgment of the first instance, and the president can also approve the extension; civil proceedings may also be suspended or suspended. .
The time requirements for administrative litigation are similar to civil litigation.
Therefore, the maximum time for administrative reconsideration is 90 days for a result, and a lawsuit may take 1-2 years to have a result.
In order to buy time, choose administrative reconsideration faster, and after the results of administrative reconsideration come out, you can go to court again.
(3) Different professionalism
In contrast, courts are more professional than administrative reconsiderations, and court judgments are public, subject to stricter supervision, and are not easy to be grayed out.
5. What is the use of the legal representative?
So many companies grab the legal representative because the legal representative’s signature can represent the company, and the consequences of his signature need to be borne by the company, and the legal representative can sue only when the legal representative signs. The legal representative has a role that other positions cannot replace. , You can read the analysis article in front of “Equity Road”.
Choose one of the official seal and legal representative. Which one do you choose as the founder?
Why do some masters advise you not to act as a representative?
Maybe he doesn’t understand the law? Or what he taught you to do was originally illegal and criminal?
If the company is engaged in legitimate business, it is not too risky to establish a representative, and at most it is only restricted to consumption due to company problems.
If the company engages in illegal and criminal activities, whether it is the legal representative or not may go to jail. Criminal liability is calculated based on the actual responsible person, not the legal representative. In the second edition of the book “Corporate Control” written by Zhuzhu There will be case presentations.
6. Why can such a simple thing be reversed many times?
As mentioned earlier, Wu Jihan’s first change was revoked because of flaws in the shareholder resolution.
Before the problem occurs, most people do not pay attention to documents such as shareholder resolutions.
Wait until something goes wrong before you go to court, but no matter how much money you spend in a lawsuit, you won’t be able to change the previously signed documents.
Because of a shareholder’s resolution, it took more than N months to return to the original point. So many things happened in the middle, and the price was large enough.
