Alibaba Executives Prepare For IPO by Securing Board Control

images_en_news_library_logos_alibabaev_largeChinese eCommerce giant Alibaba has taken another step closer to its potentially record-breaking IPO, with executives ensuring they will retain control over the companys board after it goes public.

The company powers 80 per cent of all online commerce conducted in China, and handled more transactions in 2013 than Amazon.com and eBay combined. The initial public offering of the company is expected to happen in the next couple of months, and is predicted to be one of the largest US technology IPOs in history, with the estimated value listed at $130bn (£76bn) in its most recent prospectus filed with the US Securities and Exchange Commission (SEC).

As part of the documents filed with the SEC, a group of 27 top executives and investors in Alibaba, including the co-founder Jack Ma, have secured the right to appoint another two directors to the companys board when it goes public. The move will expand the board to 11 members once the company goes public.

The companys complex governance structure and Mas outside investments in areas as diverse as e-payments and financial investment have raised questions about potential conflicts of interest.

He and 26 other key executives and investors form a group nicknamed the Alibaba Partnership, and some are worried they have too much ability to sway the companys strategy and direction, and that their interests may conflict with new investors. However, their latest move means they will be able to appoint six of the 11 board members, ensuring control of the company even after it goes public.