Did Zhan Ketuan send a dismissal notice to the former legal representative? Bitmain: Invalid

The battle for control of Bitmain has a follow-up. On May 27, it was reported that Zhan Ketuan, as the legal representative, executive director and general manager of Beijing Bitmain Technology Co., Ltd. (hereinafter referred to as "Bitmain"), issued a "notice of termination of labor relations" to Bitmain CFO Liu Luyao. Liu Luyao, whose labor relationship was terminated, is the former legal representative of Bitmain.

The document shows that Bitmain decided to terminate the labor relationship and labor contract with Liu Luyao, which took effect on May 25, 2020, and required Liu Luyao to return the relevant property to the company.

The online photo shows that only Zhan Ketuan's signature is on the document, and there is no official seal of Bitmain. This may be because although Zhan Ketuan has temporarily obtained the business registration of Bitmain in Beijing through administrative reconsideration, the business license is still in the hands of the police, and the official seal should still be in the hands of Beijing Bitmain Technology Co., Ltd.

In response to this, on the afternoon of May 27, Beijing Bitmain and its sole shareholder Hong Kong Bitmain issued two statements with basically identical content in response to this matter.

The statement shows:

First, the company has decided to remove Zhan Ketuan from the position of executive director and legal representative of the company through a shareholder decision on October 28, 2019, and the company has decided to remove Zhan Ketuan from the position of manager through an executive director decision on November 5, 2019. In view of this, Zhan Ketuan has no right to engage in any actions in the name of the company's legal representative, executive director or manager, including but not limited to issuing notices, letters, instructions, etc. to the company's employees.

Second, the company hereby confirms that the company's official seal is currently legal and valid, has not been invalidated, and is legally controlled and properly kept by the company.

Third, given that the relevant actions carried out by Zhan Ketuan in the name of the company's legal representative, executive director or manager (including but not limited to issuing notices, letters, instructions to the company's employees, etc.) clearly violated the company's shareholders' decisions, the company's articles of association and laws and regulations, and seriously damaged the legitimate rights and interests of the company and its shareholders; the company hereby declares that it has been authorized by the company's shareholders to pursue all legal responsibilities of Zhan Ketuan in accordance with the law.

Fourth, all managers and employees of the company shall safeguard the legitimate rights and interests of the company and shall not execute any requirements or claims of Zhan Ketuan or provide any form of assistance to any actions of Zhan Ketuan; otherwise, the company will reserve all rights to pursue legal liability of relevant personnel.

Which statement is more legally effective, Bitmain or Zhan Ketuan? Is Zhan Ketuan's "Notice of Termination of Labor Relations" valid? The reporter consulted relevant legal professionals, who said that the contents of these two statements show that Zhan Ketuan has no power to fire Liu Luyao now, because the legal representative determined by the company's resolution has substantive company representation rights, and the industrial and commercial registration only has the function of external disclosure. Zhan Ketuan had previously been removed from the position of legal representative by the company's shareholders, and there is currently no news that the company's shareholders have decided to restore his position as legal representative, so he should not have the right to fire employees on behalf of Beijing Bitmain Technology Co., Ltd. In other words, this "Notice of Termination of Labor Relations" can be understood as invalid.

BlockBeats reminds that according to the document "Risk Warning on Preventing Illegal Fund Raising in the Name of "Virtual Currency" and "Blockchain"" issued by the China Banking and Insurance Regulatory Commission and other five departments in August 2018, the general public is requested to look at blockchain rationally, not blindly believe in the exaggerated promises, establish correct monetary concepts and investment ideas, and effectively enhance risk awareness; any clues of illegal and criminal activities discovered can be actively reported to the relevant departments.