Introduction to Li Jianghong

Professor and Doctoral Supervisor of Law School, ZUEL

Vice Dean of Law School, ZUEL

Council member of Economic Law Research Society of China Law Society

Vice President of Economic Law Research Society of Hubei Law Society

Vice President and Secretary General of Economics Research Society of Hubei Law Society

Vice President of Hubei Research Society of Fiscal and Tax Law

Experience of Li Jianghong

In 1991, she graduated from Central South Institute of Law (one of the colleges that formed ZUEL) and got a bachelor’s degree in economics.

In 1999, she got her master’s degree in civil and commercial law.

In 2006, she got her doctor’s degree.

At present, Professor Li is the vice dean and vice head of the supervisor group of economic law of Law School, ZUEL. She is also the director of the Research and Teaching Office of Law of MBA School, ZUEL.

Baoneng’s acquisition of Vanke’s share has become a fierce war. The statement of Vanke and Wang Shi’s (the founder of Vanke) blog are full of the smell of gunpowder, saying that Vanke doesn’t welcome Baoneng and calling Baoneng“a barbarian at the door”.

From the perspective of a legal worker, I think that the statement of Vanke and Wangshi is disappointing. His solution to the problem has surpassed the limitation of law. There is a lack of entrepreneurship in Wangshi and his company.

Firstly, a company shall respect the market. Market gives changes to everyone and leaves privilege to no one. In the context of market, Vanke has no special right to discriminate against an acquirer. Even though you think that the acquirer is a barbarian, you cannot indulge yourself in moral judgement.

Secondly, a company shall respect the law and the shareholders’ rights. The value of Companies Law lies in three aspects: distributing dividends to shareholders, keeping the control over the company, and carrying forward the company’s original culture. The realization of these three goals depends on laws and company regulations. As long as the acquisition of Baoneng is legal, its rights as a shareholder shall also be respected and protected. Vanke can put forward its plans or even can use moral methods to win supporters, but it cannot break the law.

Thirdly, a company shall be able to innovate, especially in its governance structure. As a representative of China’s private enterprise, innovative is not the word to describe Vanke’s governance structure. And its incompetence in fighting against equity dilution is surprising.

At last, a company shall take social responsibility and compete reasonably. Great businessmen, in the face of risks, shall be able to show his legal awareness and moral cultivation. However, Wangshi failed to do that. On the contrary, Baoneng is winning more and more fans during this competition. Therefore, the cultivation of leadership is becoming more important in today’s China.

As a guest commentator of Legal Weekly, Professor Li will publish this article on Issue 299 of Legal Weekly.