Alibaba’s Ma says partnership not aimed to ‘exert control‘

Alibaba Group founder Jack Ma Yun has revealed fresh details of the firm's partnership structure that regulators fear could give too much voting power to company executives after a planned share sale.

The structure was explained in an e-mail from Ma to staff yesterday and obtained by the South China Morning Post. An Alibaba spokesman confirmed the document was genuine.

The e-mail said the partnership scheme had begun in 2010 and had elected 28 partners over a three-round selection process following strict eligibility criteria.

"It is not a mere profit-sharing mechanism, nor is it a vehicle of power to exert greater control over the company," the document said.

Hong Kong Exchanges and Clearing and the Securities and Futures Commission fret that the partnership effectively creates a dual structure con- ferring more rights on one group of shareholders than another.

Such structures are not permitted for new listings in Hong Kong.