Ex-Gome Chairman's 14-Year Jail Upheld; His Wife Paroled

Huang Guangyu's conviction and 14-year jail prison term was upheld Monday and his wife Du Juan was freed on parole.

A Chinese court on Monday upheld a retailing tycoon’s conviction and 14-year prison term and freed on parole his wife Du Juan, also former head of Gome as the Huang’s family struggles to retain control of the appliance giant.

Huang Guangyu, founder and former Chairman of Gome Electrical Appliances Holdings Ltd., China’s biggest home appliance giant, was convicted in May for insider trading, illegal business dealings and bribery.

His wife Du Juan, however, was commuted a three-year term and released by the Beijing high court Monday in the second-instance, which indicates that she will be able to manage the family’s fortune directly to confront the company’s current chairman Chen Xiao.

Du Juan is expected to show up at an extraordinary general meeting on September 28, aiming to discuss Huang’s five proposals, including removing Chen Xiao and cancelling a mandate allowing the board to issue additional shares representing up to 20 percent of Gome’s share capital, which would dilute Huang’s holdings.