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Posted by / 14-Dec-2020 17:53

The spirit of partnership runs deep at Alibaba, dating back to our founding in Jack Ma’s apartment in 1999.

We view our partnership culture as an indelible part of our corporate culture and fundamental to our success and ability to serve customers, develop employees and deliver long-term value to our shareholders.

Previously, our VIEs were held by a few individuals.

Upon completion of this enhancement process, each VIE will be held by a limited liability company, which in turn will be held indirectly (through a layer of limited partnerships) by selected members of the Alibaba Partnership or our management who are PRC citizens.

Global investors understand and accept the structure.

Underpinning them is the Alibaba Partnership, which plays crucial roles in, among other things, planning for leadership succession, human capital management, business ethics and social responsibility.

The partnership also has the right to nominate a majority of directors.

In an exclusive, wide-ranging interview with Corp Gov, Alibaba Investor Relations Head Rob Lin explains how the company recently refreshed its governance structure to reduce reliance on a small number individuals and also depends on stewardship by the Alibaba Partnership, a diverse group that currently consists of 36 people.

And while the company is focused on growth and profits, Alibaba is also committed to environment, social, and governance (ESG) values that need not be mutually exclusive with shareholder returns. S.-listed Alibaba shares don’t actually own a stake in the Chinese company, but rather in a Cayman Islands-based holding company that has a claim on the profits of Alibaba.

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It also further enhances our control over the VIEs through contractual arrangements at each layer of ownership.

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