Chinese giant Dacheng has kicked-started an election process for a new leadership team under a new governance and management structure.
Beijing-headquartered Dacheng, which is home to nearly 3,000 lawyers across 41 offices, is in the process of electing members for its top management line-up, which is made up of a 17-member partnership council, a five-member supervising committee and an executive committee. The executive committee will be appointed by the new partnership council at a later stage.
The election process is still in the early stages, with nominations underway. That process will end tomorrow (18 February). All of the firm’s 408 senior equity partners are eligible to self-nominate or be recommended by other senior equity partners for a leading role. Only the senior equity partners have the voting power for the management election.
The vote will take place on 21 March with the new management lineup stepping in on 1 April.
Currently, the firm is governed by a 15-strong management committee, chaired by long-serving managing partner Wang Zhongde and chairman Peng Xuefeng, the firm’s founder.
Wang has been a non-practising, full-time managing partner in 2004 and has been instrumental in Dacheng’s significant growth in the past five years. He has also led the initiatives in designing and implementing a modern management structure for Dacheng.
He will step down form the post at the end of March to retire from the firm.
Under the new structure, there will be no managing partner role. The newly introduced partnership council will become the firm’s decision-making body and the executive committee is responsible of implementing the decisions.
The firm has also changed the duration to each management term from the current two years to three.
It is the firm’s second firm-wide direct election, the first was held in 2012. Prior to that the Dacheng management committee was elected by the senior equity partners based in the Beijing head office. It is understood that Peng is widely tipped to be the most popular candidate for the chair of the partnership council.
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To read more about how top Chinese firms are confronting their first succession issues, read ChinaLaw: a tale of dynasties