SoftBank’s Arm Fired Its China CEO – But That Doesn't Mean He's Leaving

"The big shareholders of the venture—Arm and Hopu Investment Management Co.—voted to remove its chief executive officer, Allen Wu; under conventional theories of corporate governance, the shareholders get to do that.

But Wu refused to go, and he had some powerful corporate governance theory on his side too.

Specifically, in China, the legal representative of a company (Wu) controls the company seal, which is required to endorse corporate documents like, you know, the ones firing him.

So as long as he hangs on to the seal they can’t get rid of him. "