In the announcement of the permission for the change of major events of non-bank payment institutions released on the official website of the central bank, we learned that Alipay network technology has been officially changed to no actual controller. Behind this major change is the implementation of a structural adjustment plan for the voting rights of Ant Group's major shareholders. The plan has been announced to the public at the beginning of 2023, and the relevant procedures have been completed and the delivery has been completed in accordance with the plan.
Previously, the shareholder structure of Ant Group had been jointly controlled by Jack Ma and persons acting in concert, but now 10 natural persons, including management and employee representatives, exercise voting rights independently. This change means that the single control of shareholders is broken, and corporate decision-making will be more decentralized and fair.
Ant Group's shareholding restructuring plan mainly includes two aspects:
Adjustment of shareholder voting rights structure: In the specific adjustment, the voting rights of Hangzhou Junhan Equity Investment Partnership (Limited Partnership) and Hangzhou Junao Equity Investment Partnership (Limited Partnership), two limited partnerships that are major shareholders of Ant Group, were changed to be independently exercised by 10 natural persons including Ant Group's management, employee representatives and founder Jack Ma, including Jack Ma, Jing Xiandong, Hu Xiaoming, Jiang Fang, Peng Lei, Cai Chongxin, Wu Minzhi, Daniel Zhang, Zhao Ying and Cheng Li. Such an arrangement helps to avoid excessive control of the company by a single shareholder and improves the transparency and stability of corporate governance.
Promoting more transparent and decentralized shareholder voting rights: As a result of this adjustment, Ant Group's major shareholders exercise their voting rights independently of each other and do not act in concert. This means that there is no longer any direct or indirect shareholder controlling Ant Group, either alone or jointly, and contributes to more fair and transparent corporate governance.
Through these adjustments, Ant Group's shareholding structure and control arrangements have been further optimized, which will help the company achieve long-term sustainable development and better respond to potential risks. Such a change not only demonstrates Ant Group's confidence and determination for future development, but also lays a solid foundation for its continuous innovation and leadership in the global fintech field.
The purpose of Ant Group's shareholding restructuring mainly includes the following aspects:
Improve the corporate governance structure: As a large enterprise, Ant Group needs to have a more complete and scientific corporate governance structure to ensure the company's long-term and stable development. Through the adjustment of the shareholding structure, the rights and responsibilities of shareholders can be better clarified, a more reasonable decision-making mechanism can be established, and the company's governance level and transparency can be improved.
Reducing the control of a single shareholder over the company: Under the original shareholding structure, minority shareholders such as Jack Ma have greater control, which can easily lead to centralized and opaque decision-making. Through the adjustment of the equity structure, the control of a single shareholder over the company can be reduced, which can avoid the blindness and individuality of decision-making and improve the scientificity and fairness of decision-making.
Protecting the interests of minority shareholders: Under the original shareholding structure, the rights and interests of minority shareholders are often not fully protected. Through the adjustment of the equity structure, more people can participate in the company's decision-making, improve the participation and voice of small and medium-sized shareholders, so as to better protect the interests of small and medium-sized shareholders.
Adapting to regulatory requirements: With the continuous strengthening of regulatory policies and the intensification of market competition, Ant Group needs to constantly adapt to changes in regulatory requirements and market competition. Through the adjustment of the equity structure, it can better adapt to the changes in regulatory requirements and market competition, and improve the company's competitiveness and adaptability.
The purpose of Ant Group's shareholding restructuring is to achieve a more scientific, complete and transparent corporate governance structure, protect the interests of all shareholders, improve the company's competitiveness and adaptability, and better serve consumers and corporate customers.
The impact of the absence of an actual controller on Alipay and Ant Group is mainly reflected in the corporate governance structure, decision-making mechanism, shareholders' rights and interests, and market competitiveness.
The absence of an actual controller means that the company's shareholding structure is more dispersed, and no single shareholder or minority shareholder can control the company's decision-making. This will help to establish a sound corporate governance structure, improve the company's governance level and transparency, and reduce the risk of insider control of the company.
The absence of an actual controller will make the company's decision-making more scientific, fair and reasonable. Under the decentralized shareholding structure, the company's decision-making needs to take into account the interests and demands of more shareholders and avoid blindness and personalization of decision-making. At the same time, it will also promote the company's internal supervision and checks and balances mechanism to prevent problems such as abuse of power and benefit transfer.
For the shareholders of Alipay and Ant Group, the absence of an actual controller will better protect the rights and interests of minority shareholders. Under the decentralized shareholding structure, small and medium-sized shareholders will have more opportunities to participate in the company's decision-making, and improve their voice and participation. This will help to enhance the trust and loyalty of small and medium-sized shareholders to the company and promote the stable development of the company.
The absence of an actual controller also helps to improve the market competitiveness of Alipay and Ant Group. In modern enterprises, the optimization of equity structure and the improvement of corporate governance are one of the important means for enterprises to improve their market competitiveness. The shareholding structure without an actual controller will make Alipay and Ant Group more in line with the governance requirements of modern enterprises, improve their market image and reputation, and thus enhance their market competitiveness.
However, it is also important to note that there are some challenges and problems that may arise from the absence of an actual controller. For example, in the case of equity dispersion, the company may need to spend more time and energy to coordinate the interests and demands of different shareholders;At the same time, there may also be problems such as differences of opinion among shareholders and inefficient decision-making. Therefore, Alipay and Ant Group need to continuously explore and improve their corporate governance mechanisms in practice to address these challenges and issues.