Core Viewpoint - The article discusses the ongoing governance disputes at Sinovac Biotech, highlighting the complexities of shareholder dynamics and legal challenges surrounding board elections and corporate governance [2][7][12]. Group 1: Company Background - Sinovac Biotech, a prominent player in the vaccine industry, has generated over 130 billion yuan in revenue and more than 96 billion yuan in net profit from 2021 to 2022 [4]. - The company is registered in Antigua and Barbuda, a known tax haven, which complicates legal oversight and shareholder rights [5]. Group 2: Governance Disputes - The governance struggle began in 2016 when Sinovac planned to go private, leading to a power struggle between two factions: one led by the founder, Yin Moudong, and the other by investor Li Moxiang [7]. - In 2018, Li's faction gained a majority stake and attempted to replace the board, leading to a protracted legal battle over the legitimacy of board elections and the implementation of a "poison pill" strategy [7][9]. Group 3: Recent Developments - On July 9, 2025, a special shareholder meeting resulted in the removal of Li Moxiang and the election of a new board, with Yin Moudong returning as CEO [12]. - Li Moxiang's faction contested the legality of the new board, claiming that the meeting was improperly conducted, leading to a second round of governance disputes [12][13]. Group 4: Legal and Procedural Issues - The article emphasizes the importance of proper procedures in shareholder meetings, noting that any changes to the agenda or voting rights must be communicated in advance to protect shareholder interests [13][14]. - The legitimacy of the voting rights of two investors, Shangchen Capital and Weiwang Capital, was challenged, with a temporary injunction preventing them from voting during the special meeting [16][17]. Group 5: Implications for Future Governance - The ongoing disputes highlight the need for clarity in corporate governance practices, especially in jurisdictions with complex legal frameworks like Antigua and Barbuda [5][18]. - The article suggests that the resolution of these disputes will have significant implications for shareholder rights and corporate governance standards in China [16][19].

Core Viewpoint - The recent events surrounding Sinovac Biotech, including a significant dividend payout of 39.5 billion RMB and board disputes, have drawn attention to corporate governance issues and potential legal implications in similar scenarios in China [2][3]. Group 1: Corporate Governance and Board Disputes - Sinovac Biotech's governance struggles date back to 2016, involving a contentious privatization attempt and competing factions among shareholders [5][6]. - The company has faced a prolonged legal battle regarding the legitimacy of its board, culminating in a ruling by the UK Privy Council that recognized a new board proposed by a major shareholder [5][6][12]. - The recent special shareholder meeting resulted in the removal of existing directors and the election of a new board, highlighting ongoing governance conflicts [8][9]. Group 2: Financial Performance and Dividend Distribution - Sinovac Biotech reported revenues exceeding 130 billion RMB and net profits over 96 billion RMB from 2021 to 2022, indicating strong financial performance [3]. - The company initiated a substantial dividend distribution, with the first round amounting to 39.5 billion RMB, and plans for further distributions totaling over 500 billion RMB [3][6]. Group 3: Legal and Regulatory Context - Sinovac is registered in Antigua and Barbuda, a jurisdiction known for its favorable tax conditions, which raises questions about the legal framework governing its operations [4]. - The ongoing legal disputes and governance issues reflect broader challenges in corporate governance practices, particularly in jurisdictions with less transparent legal systems [4][12].