Comment On The Case Of Gome’s Fight In Domination

In2010, the case of Gome’s fight in domination attracted the world’s attention. Becauseof the constitution’s empowerment, the board of directors’s power has been enlarged whichthreathed the shareholders’ control status. This caused the two parties’ fight in domination. Inthis case, from the perspective of ownership mode, the family enterprise’s deep traces inGome highlighted the problem that the big shareholder overcontrolled the company. Butbuilding the relative concentration of owership mode is an effective way to avoid thedisadvantages of overcontrol from the big shareholder. In this mode, the shareholder’sobligation on faith is strengthened. It also introduces the category shareholder’s system. At thesame time, according to our enterprises’ tranditional characteristics, enhancing the intensity ofprotecting the investors is necessary. On the problem of building the mechanism in restrictingthe board of directors’ power,the constitution’s empowerment on the board of directorsimbalanced the company’s power which damaged the interests of shareholders. To solve theseproblems, we can use the external systems for reference and complete the system ofindependent directors and supervisors. From the point of the constitution’s function ondistributing the power, this case fully embodied the importance of the constitution in ourmodern enterprise system. To make the constitution more reasonable, we should revise theprovisions of the company law to accommodate the development of the world. We shouldexpand the board of directors’ power in a moderate way in the form of law. At the same time,setting the clauses of reserving the shareholders’ power is an available way to maintain thebalancement of the powers. Therefore, through the analysis of this case, we can find out thequestions in practice and put forward corresponding solutions. The research on theseproblems can provide the feasible development way for our enterprises. On the other hand, italso fills the blank in the field of the legal system. This will gradually perfect our country’slegal system, provide a legal basis for our enterprises in the way of transformation, andpromote the modernization of our companies’ development.