Divorce case involves equity division, may frustrate Ganji.com's IPO plan; lawyer analyzes it as...

by xinyan3427 on 2012-02-12 20:57:58

The husband "gave away" his shares, Wang Hongyan filed a lawsuit to confirm its invalidity.

Yiyan flew apart.

Yang Haoran, after completing his master's degree, joined a private enterprise as an IT engineer with an annual salary of $120,000. They became part of the middle class, and Wang Hongyan quit her job to become a full-time housewife.

Ganji.com once admitted to the media that it had plans for an IPO. Lawyers analyzed that if Yang Haoran successfully sued in the equity dispute case, Ganji.com's future listing might be affected, and all of its litigation strategies were aimed at buying time for the IPO.

Invest before "interviewing" the executive's wife.

Expert predictions

Internet entrepreneurs are in the "divorce-prone age".

Wang Hongyan's lawyer told reporters that given the complexity of the equity dispute case, it might still take quite some time to fully resolve.

As the president of Renmin University's Law School, Jia Mingjun has been studying wealthy divorce cases and has handled many such cases. He believes that there will be more network company shareholder divorce cases in the future, and the litigation may become even more intense and complex.

"I feel that events are rapidly heading in a risky direction. I must act first to protect myself!" On January 9, 2009, Wang Hongyan was the first to file a lawsuit in an American court, requesting a divorce and division of loans and properties in the U.S.

He told reporters that currently many internet entrepreneurs either "are too rich to dare marry", or require the other party to sign a prenuptial agreement, or "get married after going public", and even when discussing love and hate, they are more concerned about "social status matching".

Recently, the reporter exclusively interviewed Wang Hongyan's lawyer, who revealed some of the most detailed aspects of Wang Hongyan and her husband's ongoing divorce proceedings.

"Divorce is no longer just a personal matter; it also involves the interests of the company. I have received consultations from three tycoons within a month, all asking me about the impact of divorce on the company's IPO." He said.

The lawyer said that the civil affairs department had already issued a written certificate. And those who added words to the document also wrote a written statement acknowledging it.

In recent years, Tudou.com (Weibo), Ganji.com, and Jiakeshi have all encountered disputes over the division of equity due to divorce. The risk investment parties of these three companies all include JD Capital Fund.

Only then did Wang Hongyan realize that Ganji.com's equity might also be joint marital property, so she applied to the court to return to China for investigation. In August 2010, the American court ruled for their divorce, but the issue of property division would be dealt with separately. After Wang Hongyan's application, Handan Intermediate People's Court confirmed that the American divorce ruling was valid in China.

After returning to China, Wang Hongyan found out that Ganji.com had started making profits since April 2009, with revenues in the tens of millions in 2009, and was expected to exceed hundreds of millions in 2010. During the American divorce proceedings, Yang Haoran had transferred the company's equity indirectly to his younger brother.

After the equity transfer, Xinxiu Weiye Company became a "sole proprietorship" entity.

Accompanying reading, becoming a full-time housewife "helped" her husband start a business in the U.S.

Recently, the reporter contacted Yang Haoran. He said he didn't want the media to stir up his personal matters and hoped to resolve disputes through legal means. "She says her thing, I say mine, arguing back and forth in the media is meaningless. I don't want to get into this kind of verbal battle."

But the case isn't over yet. Yang Haoran appealed to Handan Intermediate People's Court, and the case is still under review.

In November 2007, Yang Haoran returned to China with his wife and daughter to develop Ganji.com together with his younger brother.

Yang Haoran's reason: The two of them did not personally obtain the marriage certificate, which does not conform to the statutory requirements for marriage registration. The so-called evidence was a written proof from the local civil affairs department in Anhui. It showed that "the marriage archives were lost and could not be found," and "neither party was present to handle the registration procedures."

According to media reports, regarding the repeated mistakes of Ganji.com, Tudou.com, etc., Xu Xin once stated that JD Capital had stipulated that for companies they were preparing to invest in, if the boss was married, they would interview his wife. But she denied that "no one can guarantee that interviewing will prevent problems from occurring, nor can it ensure that everything will be smooth."

Yang Haoran's brothers, including Yang Haoyong, another former American IT engineer, all lived near Silicon Valley. In 2004, many people in Silicon Valley resigned to start businesses, and the Yang brothers also considered establishing an internet company.

At that time, the smallest classified information website in the United States was called Craigslist. Wang Hongyan said that her husband proposed to replicate Craigslist's model in China.

On August 8, 1995, Wang Hongyan, a 23-year-old girl from Handan, married Yang Haoran, a 25-year-old former partner. Later, Yang Haoran went to the U.S. for further studies, and Wang Hongyan accompanied him.

In the eyes of Wang Hongyan, her husband was originally just an "ordinary person," but when Ganji.com was about to split, she noticed her husband's increasingly cold attitude towards her. She secretly observed and discovered his intricate connections with others.

Recently, Wang Hongyan revealed exclusively through her lawyer that the core of both sides' litigation involved the equity of "Ganji.com." However, what surprised her was that her ex-husband Yang Haoran actually submitted fake evidence to the court to request confirmation of the "invalidity of the marriage relationship" in order to delay the progress of the equity dispute case.

Yang Haoran's reason was: The two of them did not personally obtain the marriage certificate, which does not conform to the statutory requirements for marriage registration. The so-called evidence was a written proof from the local civil affairs department in Anhui. It showed that "the marriage archives were lost and could not be found," and "neither party was present to handle the registration procedures."

"The claim that neither party personally obtained the marriage certificate" has always been dismissed by Wang Hongyan as a rumor, and she conducted investigations with the help of her lawyer.

Wang Hongyan's lawyer said that this was a key piece of evidence, and the opposing party's actions were suspected of obstructing normal judicial litigation activities. He did not submit relevant evidence to the court and requested the court to deal with it seriously.

Wang Hongyan's lawyer stated that due to financial difficulties, every time Wang Hongyan came to Beijing for litigation, she only took the train that arrived at 12 noon, unable to afford hotel expenses.

His younger brother, Ganji.com CEO Yang Haoyong, also stated that the divorce case was his brother's personal matter, and it was inconvenient to comment.

Yang Haoran's reasons: The two did not personally obtain the marriage certificate, which does not meet the statutory requirements for marriage registration. The so-called evidence was a written certificate from the local civil affairs department in Anhui. It showed that "the marriage archives were lost and could not be found," and "both parties were not present to handle the registration procedures."

During the period when the couple was about to sign the divorce agreement, Yang Haoran suddenly proposed to add a sentence to the agreement: The equity of Xinxiu Weiye Company was gifted by Yang Haoyong to Yang Haoran and belonged to Yang Haoran's personal property. Xinxiu Weiye Company was the operating company of "Ganji.com," with shareholders being Yang Haoran and Yang Haoyong, each holding 50% of the shares.

In August 2010, Wang Hongyan sued Yang Haoran, Yang Haoyong, and Beijing Xinxiu Weiye Technology Development Co., Ltd. in the Haidian Court, requesting confirmation that Yang Haoran's "malicious transfer of equity" behavior was invalid.

According to media reports, regarding the repeated mistakes of Ganji.com, Tudou.com, etc., Xu Xin once stated that JD Capital had stipulated that for companies they were preparing to invest in, if the boss was married, they would interview his wife. But she denied that "no one can guarantee that interviewing will prevent problems from occurring, nor can it ensure that everything will be smooth."

Recently, the reporter contacted Xu Xin, the president of JD Capital, but she did not accept the interview.

The case involving the division of equity due to divorce might affect Ganji.com's IPO plan. Lawyer analysis suggested that this was the reason for Yang Haoran's extreme measures. If the court rules the equity transfer invalid and restores the equity to Yang Haoran's name as undetermined marital property, it might result in the court issuing asset preservation orders, causing Ganji.com's IPO plan to be affected.

Wang Hongyan claimed that during the trial period of the equity dispute case, Yang Haoyong had transferred all the company's equity to Ganji.com's current president Liu Tu.

The "equity transfer" case was originally scheduled for trial on October 18, 2010. Unexpectedly, Yang Haoran's lawyer informed the judge upon arrival that six days ago, Yang Haoran had filed a lawsuit in Dongcheng Court requesting confirmation of the invalidity of the marriage relationship, thus requesting the Haidian Court to suspend the trial.