Alibaba Partners Keep Control After Shunning Hong Kong for U.S.
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Alibaba Group Holding Ltd. will be governed by a partnership with exclusive right to nominate a majority of its board of directors, the company said yesterday, unveiling the details of a structure that kept it from pursuing an initial public offering in Hong Kong.
The partnership has 28 members, and will elect new ones each year. The members are required to maintain a “meaningful level of equity interest” in the company, according to a U.S. regulatory filing. The system enables Alibaba founder Jack Ma and his management team to keep control as the Hangzhou-based company expands beyond its origins as an online marketplace.