Chairman Divorce Hand Tour "Demon shares" Shenzhou Yue 4th evaporation 1.5 billion

China Thai Yue Chairman Wang recently divorced by his ex-wife divided nearly 1.5 billion yuan equity, refreshing the gem listed company executives divorce property division records, by the media called "Gem of the most expensive divorce." Not only "breakup fee" expensive, the announcement issued after the Shenzhou Tai Yue stock price continuous pressure, but also let Wang's book market value lost a lot. Announcement of the previous trading day (ie October 11) The closing price of China Thai Yue 34.55 yuan, as of October 17 closing down to 32.1 yuan, according to the total share capital of 613.4139 million shares, only four days, the company's market value has evaporated more than 1.5 billion yuan, Wang I hold the share market value also reduced by 100 million yuan. However, October 18, the Chinese Tai Yue stock market frequently touched trading, the day closed at 35 yuan (up 9%), or because the previous session of the company released the expected growth of good news. I knew it, why. Wang Fang, a senior partner at Dacheng law firm, believes that executives of listed companies can reduce the negative impact of marriage on the company by setting up family trusts, signing property agreements before listing and even making peaceful breakup signs. Separation of property rights and voting rights October 12, Shenzhou Thai Yue issued a notice on the change of interest, because the dissolution of marriage, according to Wang and his ex-wife Amme on divorce matters related to the property division of the agreement, Wang will be held in the China Tai Yue's shares of 50% (that is, 42.26 million shares) split transfer to Amme name. Familiar with the Wang informed the newspaper, Wang is 52 years old, Amme is his "wife", two people married more than 20 years, as early as 2011 divorced. China Tai Yue's announcement also shows that the split is based on the Beijing Haidian District People's Court (2011) The first word of the "civil Mediation book" and the implementation of the settlement agreement. Wang has served as chairman of Shenzhou Yue Company since May 2001, and also serves as director of Beijing Kai Tian Tong Xin Technology Co., Ltd. Wang also owns some of the company's stake, but the company's shares were not split during the divorce, but Wang retained all of the stakes, but gave Amme $ more than 20 million as compensation, people familiar with the matter said. However, the reporter could not contact the Wang and Amme for verification. The share split before the transfer, Wang holds about 84.53 million shares of Shenzhou Yue, accounting for 13.78% of the total shares, with the company general manager Lili tied major shareholder. After the division of the transfer, Wang and Amme each holding 42.26 million shares of China Thai Yue, accounting for 6.89% of the total shares of the company, tied to the third largest shareholder (directors singular strong to 7.22% shareholding jumped to the second largest shareholder). At the same time, Amme committed to its acquisition of the above-mentioned shares in Wang in China, Thailand Yue director, supervisor or senior executive during the year can reduce the share of their shares held 25% of the balance, and the shares of the corresponding voting rights, voluntarily entrusted to Wang on behalf of the exercise. The ownership of shares and the right to vote "separate operation", Wang Fang thought that the use of the law is allowed to do so. This is also the case for many senior executives in public companies. As a non shareholder spouse, moreConcern is the property rights of equity, rather than participating in the company's management. In Wang Fang's view, this is a common-win approach. "To maintain the status of the actual control of the company, which is good for the performance of listed companies, future business development." Even if divorced, both spouses have common interests in this regard. If companies are affected by their divorce or other things, their performance is bad, their market capitalisation is down, and their ex-wives ' property will be affected. "Husband and wife property contract + Cash family Trust" The combination of divorce is so "expensive", presumably will cause many public company executives headaches. For executives marriage caused by the stock market value of listed companies "evaporation", three different circumstances can choose different ways to avoid the highest state. First of all, for overseas listed companies, Wang Fang suggested that the family trust to prevent the division of equity. The typical case is Longhu real estate. Longhu property was listed in Hong Kong in November 2009, but as early as 2007 Yajun and Caiqui registered two charmt alent and precious full companies in British Virgin Is., respectively, holding 58.59% and 39.06% per cent of Longhu real estate. In June 2008, Yajun the CHARMT Alent stake to the HSBC International Trust, a wholly-owned subsidiary registered in British Virgin Is. Silver Sea. In the same way, Caiqui transfers precious full total issued share capital to the same background silverland. Longhu Real Estate prospectus shows that Silver Sea and Silverland become direct controlling shareholder of Longhu Real Estate, Wu Chai Two people no longer directly hold Longhu property, but through the Wu family trust and Chua Family Trust respectively control Longhu property 46.9% and 31.3% equity. The shares of the listed companies of the two persons have been entrusted to the Trust company, no longer belong to the husband and wife. Divorce does not have a natural impact on listed companies. Moreover, for domestic listed companies, there is no way to set up a family trust as a trust asset for listed companies. To avoid this risk, Wang Fang suggested the adoption of the "marital property contract + Cash family Trust" package. "Marital property contract" means that both spouses sign property contracts before the company is listed, the agreed shares shall be owned by one party and the other Party shall be given cash compensation; the "Family trust in cash" is a family trust asset with a cash-like asset and a non-shareholder spouse as the beneficiary of the trust structure, and the trust is an irrevocable trust. For example, the husband and wife agreed to share the shares of the listed company with the husband, who could make up a sum of money to pay for their wives, or a sum of money to set up a civil trust in China. The husband, as the trustee of the trust structure, the Trust company as the trustees and the wife as the beneficiary of trust. This combination of operations, once marriage, will not cause the shares of listed companies are divided, the wife has a fixed income every year more reassuring. The last situation is that executives of listed companies do not pay for family trusts, and divorce can only split the stakes. Wang Fang thinks, "onlyOne way is for them to be particularly harmonious with each other and to leave the public with a sign of a peaceful break-up. If the two sides of the split agreement to negotiate the door, voluntary performance, rather than through the divorce proceedings to allow the courts to force the division of property, this will also reduce the impact on listed companies. ”