Salala fall: VCs not an angel Salala in the electricity business website is not very well-known one, but we still decided to share this case excavated to the reader, because we believe it is for the majority of business in the electricity business, particularly those introduced in the wind investment or venture to be introduced, with a great reference. VCs are the angels? What kind of venture is what we need? Diversified ownership structure of the company will bring what impact? So many problems in the Salala cases have been thoroughly exposed out - the founder of the deportees, investors on the company's improper intervention among professional managers for the company to occupy, a legal agreement hide blemishes ...... 2011 On September 1 morning, Salala flowers and gifts network home impressively original color is black and white 'declaration' instead. It was shocking scene, in addition to shoppers, as well as customer service Salala Dai Lin (a pseudonym), chairman of Salala and only a minority shareholder Huang Chuan.
Website of business on August 31, an article entitled 'Salala 2011 resolution on the implementation of the second meeting of the Board notification' Bowen in 'Salala employees activist blog' was posted on the paper lists the CEO garden The 'crimes': 1, took over the company's idyllic time in seven months, the company's cash from more than four million, straight down to several hundred thousand dollars. 2. Pastoral large loan to the company, often tens or even hundreds of thousands once, and only fill out a single borrower, the borrower's real purpose is not clear. Pastoral to 'tax' as an excuse, too reluctantly, and may have been caused by the company's alleged tax evasion. 3, on the part of the pastoral staff said, so cash spent, he will control and free 'owned' company, lack of integrity and ethics involved in a disciplinary offense. The notice from its controlling shareholder Salala TechVentures. They said in a statement on September 6 in said mid-August have Salala staff report said, idyllic existence alleged manipulation of the operating secretly, to avoid the normal financial procedures and improper misappropriation of company funds and other conduct contrary to the behavior of professional managers. Chi group sent after reviewing the financial situation of deterioration in Salala, the company will soon insolvent, unable to bear the bear debt. The statement also explained both sides of the scores and the site shut down the whole story to the public: 'Pastoral Department, General Manager of the Board in January 2011 the company hired since January 2011 Salala (Beijing) Business Consulting Co., Ltd. and its affiliated companies Beijing Ming-hung Time Network Technology Co., Ltd., Beijing-new Culture Communication Co. Ltd. Code fine. I do not own any shares of pastoral Salala company under its actual control ...... was suspended after the countryside, is still illegal control of the company relevant certificates, financial accounts, web server, and the possibility of the existence of Salala companies continue to lose money, in order to avoid further cause consumers and suppliers related losses, the company decided to suspend the related web services. ' Alarmed by the site closure, Wanch very angry: as chairman of the board of directors he knew nothing mentioned in the statement. He became even more angry is that this means that the Salala sent to the grave.
Farce expulsion fuse ignited the conflict on August 30 afternoon. Managing Partner York Chen Chi-based partner with Beijing, lawyer, secretary and his party came to Salala, in the company downstairs cafe and pastoral representations, pointing out the company's financial situation is critical, with the board wanted him to make the transition. Pastoral promised. I did not realize back upstairs office, garden immediately phoned responsible for finance, administration of two employees, let them put away licenses, official seal. The other side, Chi and his party to call out the marketing manager Miles Salala the door, confessed he took over pastoral work, prepare the handover, when the conversation is caught down the financial and administrative slip down the stairs, then stopped two people, let them together upstairs. Witnessed this scene, idyllic wedding department heads allow the company blocked the door. The two sides deadlocked on the door inside and outside for half an hour. Then go out pastoral, with financial and administrative escorted downstairs, the two sides since the conflict. York Chen prevent unsuccessful party then entered the company, in his capacity as the board of directors announced the recall pastoral resolution. 'Then it becomes a farce,' and witnessed the scene of the conflict thousands of miles helpless. In front of all employees, York Chen and his party do not meet the company fierce accusations pastoral transition, listing financial irregularities pastoral.
Pastoral subordinates booing, said the company's business is very good. The whole process, the countryside has been silent. Chaos continued until six, York Chen and his party have left the company and thousands of miles. An insider said, the evening trying to win control of the rural sites, but was refused. The other reason: financial, badges in countryside hand, direct hit on the website and so are the pastoral personal contact person, website traffic is stopped in order to avoid further losses to consumers and partners. The day before the conflict, intellectual base side has contacted thousands of miles, so that he was ready to take over the pastoral, the preservation of the limited resources of the company, to retain the minimum legal capital, in order to deal with the issue of compensation of employees in accordance with the relevant provisions of the labor law in the worst condition. He agreed to the appointment of Miles, the next day in the conflict to find a pastoral talks to his normal handover to the reasonable satisfaction of employees, rural rejected. The breakdown of negotiations, the impasse has become. August 31 night, Salala flowers and gifts network ceased operations. The next day, in the face of the website outage, customer Dai Lin and most of the staff did not get any explanation, only to be informed home waiting for news. The company stayed pastoral media and directors of the Company Bierbuxian speculation that his business sector continues to operate under the leadership of the wedding line. Runaway seven months in Wanli Dai Lin's eyes and customer service, compared with the expulsion of employers farce, seven months under the rule of a more pastoral absurd. In January, the company's new CEO pastoral airborne. After the arrival, did not give pastoral staff had one regular meeting, a statement that: 'Since the board does not open up.' Pastoral also come together with Morgan Joseph Chen investment company employees. Chen is not in Salala office, but its mystical status employees confused. When employees find idyllic signature, he always first asks Chen, and asked the general situation of the company are reported to Chen. Dai Lin who feel confused: '?? Colleagues in mutual discussions, field them that it is going to do what we had to do,' said Miles in charge of marketing, rural and Chen passed information to employees sometimes are different ergo proxy cosplay The 'company management people know what.' Miles said there is no electricity or Internet pastoral background, do not understand the company's specific operations such Salala business gradually paralyzed. Pastoral cut any money marketing efforts, including advertising, SEM, Marketing rely on CPS, marketing partnerships, support channel resources, 'forced to do, decline.' In addition, rural compression staff, cancel regular meeting, took over seven months to the absence of any operational goals and schedules. Staff have left, but not granted a new recruitment program, customer service has been unable to carry out normal work in shifts. Miles believes that Salala although there has been no profit, but not now like this: 'When a company becomes the last thing to do for employees compensation for labor law to get money to leave, you can see This business of how sad. 'In the eyes of employees, pastoral most positive in April as the formation of a new wedding section.
Miles introduced, wedding section entirely built by the pastoral and Chen. In June, after the company moved to new premises, the office has no trace of how many Salala flowers and gifts network: Wedding unit accounted for two-thirds of office space at the wedding site on the company lie in the door is on the wall very eye-catching. These signs exacerbated miles of pastoral question:. 'Wedding is below the line, inputs, marketing is Salala resources, but are generally cash income, but not invoiced, can not achieve financial supervision' intellectual base for rural transfer cash charges, Miles cosplay costumes for sale expressed earlier 'have heard', but do not know the amount so much so serious deterioration of the financial situation. In the pastoral office, the chairman of the body in Xi'an, Huang received only once the financial statements, no board meeting also makes him very unhappy. In the meantime, several Wanch York Chen proposed to replace the pastoral requirements, York Chen's answer is: now the CEO did very well, the company is to pick up, he was very satisfied. After the outbreak of stigma, chairman of Salala, step up and recover, but also Wanch. He stated in microblogging, it is Salala founder, chairman, CEO and minority shareholder's first - has long been that the majority of Salala staff did not know. Yellow River in referring not Salala Salala flowers network in 2000 by the creation of Guo Feng in Xi'an, the site in 2004 was Yaohan acquisitions. In 2007, the Yellow River and TechVentures joint Salala wholly acquired from Yaohan hands, and the establishment of Salala (Beijing) Business Consulting Co., Ltd., he served as chairman of the company, and soon after became CEO. After the outbreak of Salala incident, Huang Chuan rushed to Beijing from Xi'an, investigate the matter on one side, the side requires intellectual base to give employees and shareholders deserve compensation. Unfortunately, until the deadline, Huang Chuan failed to meet key people with pastoral events, York Chen. According to the staff report, brewing recall CEO, announced that the board of directors Salala suddenly to recall resolution, while the appointment of the new controlling shareholder CEO-- TechVentures taken against Salala CEO 'lightning war', has staged once in September 2007 , the object is to recall that time, Huang. Faced with the sudden dismissal of the resolution, Wanch unacceptable. But and rural difference is that Wanch agreed handover because 'I have promised the board, not suitable for the position of CEO, I can always lower.' He did not take the company personnel, but was forced to give up half of the shares. So far, though, he remains chairman and minority shareholder of the company, Huang Chuan for Salala lost control. Huang Chuan said at the time did not understand why the recall directly, for reasons chi group did not give convincing. So that he was unwilling to take over the company four months only when deposed, 'which is a transition period of two to three months, there is no room and time to cast.' Seats on the company's board set led Wanch weakness. TechVentures is the controlling shareholder of the company, its management and Salala Partner York Chen, project manager of the Board Lu occupy three seats in the company's two seats, only one seat Huang Chuan, Chi group in fact become Salala actual controlling party. For four years, Wanch understand Salala channel is a board two months, during the meeting at the company for a period not more than half a day, Chi group and the management company's total rejection of him in contact with the staff, led him to understand the company's internal situation. Then deposed the truth, in the recovery process after four years in the exposed tip of the iceberg. Huang Chi Chuan from staff members informed group: CEO at the time, he was reported as 'corruption and overstatement instrument' employees. This explains the intellectual base and Salala management of the Yellow River's long-term exclusion of certain extent: he was regarded as a liar. Wanch analysis, intellectual base for his suspected unproven and there has been, it is recommended that he put forward, 'said White also said basically, can not control Salala, each tube is a stomach gas.
There humiliation ah employees do not know my directors and shareholders exist! 'know all this, angry Chi Huang Chuan contact group, ask them to come up with his old corruption of evidence, if proven true, he will not compensate, also free Salala staff to help deal with the problem and pastoral, otherwise, claiming turn several times. With the recovery of the request, the Chilean base to staff all went to Taipei to open the annual meeting on the grounds, did not respond to Wanch. Wolf in Wanch opinion, Salala fall trajectory, Zhengshi from four years ago he was suddenly dismissed. In March 2007, Huang Chuan and TechVentures jointly owned acquisitions Salala Babai worship from the hands of Chilean investment group for $ 2.5 million, the two sides hope to expand along with the company, four years after listing. That time Salala have good performance in all aspects: Salala flower delivery in areas maintained NO.1 body position; Salala brand in the consumer, especially in the very well-known white-collar workers; Salala It is a profitable business. Based on these analyzes, Wanch of Salala foreign investment in the Internet to build a common project VIE structure, and developed a timetable for the listing. Salala initial valuation is four million dollars, Chilean group insists on shares accounted for 62.5% of the controlling shareholder. Wanch explanation, originally planned to dilute intellectual base of the shares in the second round of financing, but it has not been Salala second round of investment. Chi 基莎 La La Lu Qiang, head of the original project in a media interview, also confirmed this. Peng Huang, Huang's successor led the Salala more than three years of development. He is the earliest form Wanch team member, before becoming CEO is responsible for the technical work, we have to do background telecommunications solutions. During this period, Chilean-based partner Lu Qiang has been Salala project manager, on behalf of the Board of Directors held a leading intellectual group, responsible for corporate governance. Miles noted that regular communication with employees Lu Qiang, Huang Peng will also give some advice, 'this project is quite got the idea.' Board specifications held out monthly financial statements. Although management is relatively orderly, but has yet to Salala business improvement, it has not been profitable. As B2C veteran, hard years of Salala net sales of flowers and gifts only to the order of ten million. Huang Chuan said the company in Huang Peng under the rule of three years, less than half the cash, the indicators have declined, only staff costs continue to rise, 'I gave them two years, once objections did not mention.' But as Huang Peng, Wan Li have different views. Cash reserve issues referred Wanch, Miles said in fact domestic independent electricity supplier could not find some money, three years Salala sales, registered users, the number of channels, customer price are on the rise. Third year, Huang 川提 a replacement CEO, but failed to reach agreement and Lu Qiang. When he found the time to communicate York Chen, Chen said, the project has been Salala Chilean base in the book write-downs of. Huang Peng replace discussions dragged on for a year, until October 2010 Chi Lu Qiang leaving group. Thereafter York Chen and Lu Chuan is getting stronger successor selection of a new CEO. Chi group recommended pastoral appear in Wanch field of vision. After investigation pastoral background, 黄川明 really against it. He pointed out that there is no electricity suppliers pastoral experience, has never worked in a professional company, the company's normal workflow, there is no provision concept. According to Miles recalled, pastoral staff had about their years of living in Russia, had just returned, before trade in footwear. Salala new project manager is an investment manager chi group, in its support of the pastoral office. Huang Chuan Chi Kitimat to the hope of Salala sound financial system, the finance director to leave strokes back, chi group also did not adopt that this will increase the company's costs. The newly appointed project leader at Salala incident became the focus of the outbreak. Yellow River, thousands of miles, Lu Qiang none of the media revealed his name, but both pastoral recommend people, Salala project manager, on behalf of Chi group supervisor multiple identities, role in the incident by Wanch questioned. Intellectual base for their suspected internal staff involved in the incident also revealed a statement: 'found in the financial review of the company's individual employees may be involved in related party transaction, we will further identify the relevant circumstances, such as the existence of related party transactions without permission, we will . for serious treatment. 'Chuan Huang Wanli and revealed some of the facts: In the name of Salala car was illegally disposed of, hanging in Salala The official name of the project's investment manager. Thus, as an investor and the controlling shareholder of Chi group also wade into the muddy water. Huang Chuan stressed to reporters that since he left office politics has become this small company's corporate culture. He refers to the company's internal factions intensified Salala fall. 'Salala four years is my very painful process.' Huang Chuan told reporters that he asked several times to exit, to Chilean group to repurchase his shares, but was rejected. Thing has evolved, Wanch emotion: 'To be a harsh word, because in me, but I asking for trouble.' After the 'flaw' incident occurred board resolution, Salala flowers and gifts network outage continued, still rural work in the company, intellectual base Venture Beijing office closed thank. Reporters with Chi group appointed successor miles to travel together Salala were turned away. ? 'To discuss compensation for the consumer of the result of it,' the face of challenge microblogging, Huang Chuan reluctantly responded: 'So far unable to contact the Salala actual controlling shareholders TechVentures, I will take action as soon "dragon ball z wigs " as possible in order to ensure the interests of consumers, employees and shareholders. 'Salala on a website linked to the number of days mentioned in the statement,' Salala 2011 second meeting of the Board resolution 'has become the key events in evolution. Salala staff told reporters that the resolution sent to the hands of each employee, clearly stop pastoral duties, replaced by Miles decided to take over the work. However, this resolution time, place and signature are subject Wanch questioned. Huang Chuan pointed out that a total of Salala had three directors, namely, York Chen, Lu Qiang, Huang Chuan.
The Board meets at least two of whom must be present. Similarly, the board of directors and above must have two directors signature to take effect. But after leaving the Chilean group Lu Qiang, he did not know who the third director is, can he and York Chen left the meeting, so the Board of Directors regarding the site mentioned by surprise. After onward, this resolution of the Board found that the above signed Wanch York Chen and Lu Qiang's name. He later learned to call Lu Qiang, Lu Qiang, did not attend the meeting, let alone sign. After arriving in Beijing, Huang Chuan Lu in front of thousands of miles of surface strong call to verify, to the board of directors declared invalid Miles. Then Huang Chuan issued a statement on the microblogging: 'I declared invalid board resolution TechVentures Aug. 29 unilaterally declared the board of directors has not been, and because of the signature, address and time of the meeting alleged forgery, the act resulting in Salala by brand Loss and websites shut down. As a shareholder and a director I reserve the right to legal retroactive to the Chilean base. because holding company registered in the Cayman Islands, and the applicable laws of Hong Kong, under the law, forged documents of the Company behavior has been suspected of a criminal offense. 'Wanch Chi group accused unilateral actions led to intense confrontation and pastoral, then against the declaration sent to the Internet, the termination of customer service, the company's internal contradictions exposed to the public, making the Salala brand reputation becomes negative, 'This sentence Salala the death penalty. 'Miles told reporters, is chi group appointed new management, his attitude is good to assume the role of a transition before Salala clear way to protect the interests of all. Huang Chuan pointed out that the issue of board resolution, he hoped 'even as an ordinary staff' to help deal with the controlling shareholder of Chi group to do. Miles said, 'defect' The board of directors has also been seized on pastoral: 'Pastoral said the board will not be held against him further.' In addition, rural and Chen also expressed more than once to the skies, Salala the VIE structure allows chi group did not get his way. This is because the actual business is generated by Salala Beijing Time Network Technology Co., Ltd. Ming-hung, and through the protocol control mode to the Salala transfer income. Huang Chi Chuan shareholder base and not Ming-hung, so from a legal perspective, they are pastoral and Ming-hung is non-binding. Huang Chuan also said that the ownership structure, the level of legal relationship, that he could not negotiate directly and pastoral. Partner Chi group does not appear, there is no way to convene the Board. Now only in his own name, to preserve the company's assets. Huang Chuan repeatedly stressed risky VIE structure, 'especially domestic companies, depends entirely on the personal integrity and professional conduct. Why Chilean group can not solve rural problems? Because all the legal documents show, the pastoral is the legal representative of domestic companies is he 100% wholly-owned company, so now the company is still blatantly pastoral work 'powerless aftermath Wanch microblogging released his views on the Salala incident:.' event is the fund insider conspiracy, another investment firm Morgan Joseph staff planning, pastoral implementation, coupled with Sophia-based weakness, incompetence and dereliction of duty arising under the situation. The reason why so emboldened Sina VIE structure produced by the professional analysis. 'Things have happened, but the aftermath of Salala continued aground. At present, Huang Chuan and Chi group is the largest points of disagreement: the pastoral wisdom Kitimat To catch up with the money to solve employees' problems. Huang Chi Chuan opinion is based must be prepared to solve the problem of funds or a clear commitment to employees, suppliers and shareholders, while addressing the recovery of funds. Huang Chi Chuan directed group does not have the qualities as the controlling shareholder of the company, because intellectual base in some other investment in most of the roles with the cast. He pointed out that intellectual group Salala is only one investment project in the field of electronic business and the only one led by his own project. In addition, Chi group internal instability, as well as selection and low capacity. Salala tragedy of lead, Wanch that in addition to quality due to the fund company, even went to the market environment: 'Now more and more fund companies, Dajiadoumang grab projects, has cast the project is not their The focus now. '' I do not think Chi group is an investor, 'Huang Chuan said the Chilean group is a fund management company, so investors Chi group behind, Salala employees, consumers, shareholders, this incident is true victims, 'I believe that wisdom can themselves do not want to ruin the company, but it can not afford.' Now 黄川明 indeed put forward their demands: first to ensure that employees, consumers and shareholders; followed by recourse to the company's cash assets . He said that after the outbreak had telephone communication and York Chen, Huang Chuan Chi group hoped to come forward to seek pastoral recoverable. But neither to his authority, there is no clear statement that led to his hands no resources aftermath. As of press time, the reporter could not be reached York Chen, Tian refused to be interviewed. Attachment: 'Salala Flowers Events' In 2000, Guo Feng create Salala flowers network in 2004, thanks to the acquisition of Babai Salala Flowers March 3, 2007, Yellow River from Babai worship hands-owned acquisitions in Xi'an Salala flowers network, the introduction of Chilean investment group in May 2007, Huang Chuan Salala Flowers formally as CEO in September 2007, Huang Chuan deposed CEO position, Huang Peng succeed. October 2010, TechVentures Salala project manager Zhi Lu Qiang leave the base in January 2011, was appointed pastoral CEO, replace Huang Peng August 29, 2011, the Board announced the cessation of pastoral duties, powers to act by the Miles 2011 On August 30, TechVentures York Chen and pastoral conflict August 31, 2011, thousands of miles and pastoral talks broke down, the night Salala flowers and gifts network ceased operations September 13, 2011, Huang Chuan issued a statement said it will close the site Stop to take legal action for compensation