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Arm's Chinese joint venture rejects allegations of misconduct against CEO

Telegraph 11 Jun 2020 11:04

Arm's Chinese joint venture has rejected allegations against its top executive and accused a prospective replacement of “major violations,” escalating a dispute with the semiconductor industry linchpin owned by SoftBank.

The tit-for-tat duel began Wednesday when SoftBank’s Arm said the board of Arm China voted to oust Chief Executive Officer Allen Wu, and appointed Ken Phua and Phil Tang the venture’s interim co-CEOs.

But the Chinese firm then said Wu remained in charge and the board’s decision carried no legal weight because the meeting had not followed procedures. Arm China is jointly owned by Arm and investors, including China’s sovereign wealth fund, an unwieldy group that has left unclear who ultimately makes leadership decisions.

After Wu refused to step aside, Arm disclosed to Bloomberg News it had conducted an investigation of the CEO that uncovered conflicts of interest and violations of employee rules.

'Major violations'

On Thursday, the Chinese venture responded by calling the allegations against Wu groundless. In a new twist to the dispute, it said Tang himself had been dismissed May 26 for unspecified “major violations,” and no longer held any position within the company.

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