Wahaha, China's largest beverage maker, yesterday accused
partner Groupe Danone of contract breach, while the French food
giant sought the transfer of company stamps and business licenses
from the joint ventures' management to the Danone-appointed
chairman.
Wahaha yesterday released a letter from Emmanuel Faber, the
French company's Asia-Pacific region president, addressed to seven
joint ventures. In it, Faber, acting as chairman of the joint
ventures, demanded the ventures' management hand over company
stamps, licenses and other important documents immediately on
Monday.
In the letter, Danone claimed the transfer is in line with legal
procedure, since Faber has replaced Zong Qinghou as chairman and
resolutions were passed during the board meetings a week
earlier.
Danone, which accused Wahaha's illegal non-joint ventures of
making competitive products in violation of 1996 agreements, says
it wants to ensure important items be put under strict custody and
supervised by the new chairman so that they are not used in an
unauthorized way.
Wahaha reiterated yesterday that the board meetings among the
five directors of the seven joint ventures - including two from
Wahaha -did not reach any agreements, adding that Danone's
appointment of a new chairman is illegal.
The Chinese directors "did not sign on any resolution prepared
by Faber in advance. The decisions made by Danone's three board
members are unilateral, which shows that Danone overlooked the
rights of the Chinese side while they breached the contracts",
Wahaha said in a statement yesterday.
The Chinese beverage maker called Danone's request for a
transfer of documents and records groundless.
In the letter copied to general managers of the seven ventures,
Danone said the new chairman was legally appointed in a vote during
the two-day board meetings in Hanghzhou in eastern China.
(China Daily June 28, 2007)