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Rebel head of Arm China is not going to leave his post
In September last year, the British holding Arm announced an upcoming deal with NVIDIA, under which it will come under the control of the last of the companies. In June, an attempt to change the head of the Chinese joint venture Arm China failed, and rebel director Allen Wu remains on the defensive, not intending to leave his post.
Head of Softbank Masayoshi Son. Image source: Bloomberg
As noted by Bloomberg, the actual head of Arm China told his subordinates, along the way, he sent them New Year’s gifts in February in the form of a small amount of money in red envelopes with his own name. Allen Wu is not shy about covering legal costs from the corporate budget related to defending the right to retain his position. He is challenging in court not only the very fact of his dismissal in early June last year, but also the subsequent appointment by the head office of three representatives to the board of directors of Arm China. Allen Wu accuses them of embezzlement of corporate funds and is going to force them to pay damages through the court. The meeting on both cases will be held at the end of April.
As explained by Bloomberg, these proceedings have not hurt Arm’s business in China so far, but the head office in the UK has taken a wait-and-see attitude, not taking any active steps in the legal field. It is difficult to say for sure whether the confrontation between the parties to the conflict around Arm China will prevent the timely coordination of the deal with NVIDIA. It is believed that Allen Wu has supporters in the state structures of the PRC, who are also shareholders of Arm China.
Experts note that for the head office of Arm, the situation is aggravated by the specifics of Chinese legislation, which does not allow changing the head of the company without access to the press and statutory documents, and in this case they are held by Allen Wu. According to sources, he is simply gaining his own price, seeking more substantial compensation from the parent company.