Does the chairman with a million year salary also seek compensation? This institution suffered a debt recovery of 42.2 million! What happened? Ruling Letter | Chairman | Institution

China Fund News Dawn

What is the situation? The chairman of an insurance company with an annual salary of one million yuan went to court with his former employer to seek compensation?

Recently, two rulings on the Chinese Judgments Online have received widespread attention from the financial community, involving Three Gorges Life Insurance and its former chairman, Li Jiming. The content of the ruling shows that Li Jiming claimed that during his tenure, Three Gorges Life Insurance did not pay the full amount of labor remuneration and illegally terminated the labor contract without legal procedures, which infringed on his own rights and interests. Therefore, he filed a lawsuit with the court.

In addition to his special identity, the total compensation amount proposed by Li Jiming also caught the eye of the industry. Including unpaid wages during the preparation period and other performance-based wages, Li Jiming has recovered a total amount of 42.2 million yuan from Three Gorges Life Insurance. The reason given by Three Gorges Life Insurance for terminating the labor contract is that "there has been a significant change in the objective situation at the time of signing the labor contract.".

According to public information, Li Jiming has been serving as the leader of the preparatory group for Three Gorges Life Insurance since 2011. After the establishment of Three Gorges Life Insurance in 2017, he became the first chairman and continued to work for more than three years. Previously, Li Jiming stated in a media interview that the road to the establishment of Three Gorges Life Insurance was bumpy, and he had "borrowed more than 1.2 million yuan from the bank in his personal name to prepare for paying salaries to employees.".

Take a look at the details——

Is the chairman also fired?

Angry and demanding a salary of 42.2 million yuan

Firstly, let's take a look at the views of Li Jiming, former chairman of Three Gorges Life Insurance:

Li Jiming filed a lawsuit stating that he had been commissioned by the initiators of Three Gorges Life Insurance to establish a preparatory group since January 2011 and was appointed as the leader of the preparatory group to oversee the preparatory work. In January 2016, Li Jiming signed a labor contract with the preparatory team, stipulating that after the registration of Three Gorges Life Insurance, Li Jiming's salary should be paid in a lump sum from January 6, 2011 to the industrial and commercial registration date of Three Gorges Life Insurance.

Subsequently, in March 2016, with the approval of the former China Insurance Regulatory Commission, Li Jiming was proposed as the Chairman of Three Gorges Life Insurance, continuing to be responsible for the preparatory work. In December 2017, Three Gorges Life Insurance was approved for establishment, with Li Jiming serving as the chairman and legal representative.

What is the salary level of Li Jiming at Three Gorges Life Insurance? According to the court's investigation, Li Jiming signed a labor contract with the preparatory group of Three Gorges Life Insurance in January 2017, with the official establishment of the business registration of Three Gorges Life Insurance as the work task, from January 1, 2017 to the end of the preparatory work. The contract follows the standard working hour system, with a monthly basic salary of 52367 yuan and bonuses paid based on regular assessments.

After the establishment of Three Gorges Life Insurance, in December 2020, Li Jiming signed a fixed term labor contract with Three Gorges Life Insurance for a period of three years, serving as an office worker with a monthly basic salary of 165800 yuan before tax.

Li Jiming claimed that he had been providing labor for Three Gorges Life Insurance from the self preparation team until its official establishment and effective operation. During his work, he repeatedly claimed labor remuneration from Three Gorges Life Insurance, but Three Gorges Life Insurance did not pay in full.

Not only did his salary not meet the target, but Li Jiming also claimed that he had suffered from the company's illegal termination of the contract. Li Jiming claimed that on September 30, 2021, Three Gorges Life Insurance illegally terminated its labor contract without going through legal procedures, infringing on its own rights and interests. Therefore, it filed a lawsuit with the court.

In terms of litigation requests, Li Jiming has a total of four litigation requests: first, to order the continued performance of the labor contract and the restoration of work positions; The second is to order the payment of 32.09 million yuan in unpaid wages during the preparation period; The third is to order the payment of 6.4675 million yuan of unpaid performance-based salary from January 2018 to September 2021; The fourth is to order the payment of 3.6483 million yuan in salary for the period from October 1, 2021 to August 31, 2022. Among them, three demands related to "salary seeking" totaled 42.2058 million yuan.

Company: Significant changes in objective circumstances

Provide over 90000 economic compensation

Although Three Gorges Life Insurance announced in 2021 that Li Jiming will no longer serve as its director, chairman, legal representative, and other positions. However, in the ruling, Li Jiming still appears as the chairman of the defendant Three Gorges Life Insurance, and the legal dispute between the two sides is quite regrettable.

According to the court's investigation, Three Gorges Life Insurance was established under the background of the Party Central Committee's support for the subsequent development of financial layout policies in the Three Gorges Reservoir Area. In 2011, the People's Government of Wanzhou District, Chongqing took the lead and proposed to jointly establish it with Wanzhou District Asset Management Co., Ltd., Wanzhou Natural Gas Company, and Wanzhou Water Supply Company as initiators.

In January 2011, the Wanzhou District Committee and Government of Chongqing conducted research and organized an audit, and introduced Li Jiming as the Deputy Secretary General of the Wanzhou District Government and Deputy Director of the Preparatory Group Office of Three Gorges Life Insurance Company. He was responsible for assisting district leaders in contacting financial work and leading the establishment of Three Gorges Life Insurance. In July 2012, the three aforementioned enterprises in Wanzhou District withdrew from the establishment process, and the initiators of Three Gorges Life Insurance were changed to Chongqing Yufu Asset Management Group and others.

At the end of 2017, Three Gorges Life Insurance was approved for establishment, and Li Jiming was appointed as the first chairman and legal representative of the company. After working for more than three years, in August 2021, Three Gorges Life Insurance held an extraordinary shareholders meeting and decided to terminate the performance of the first board of directors and the first supervisory board. Li Jiming will no longer serve as a director, chairman, legal representative, and other positions.

On September 30, 2021, Three Gorges Life Insurance terminated its labor contract with Li Siming due to significant changes in the objective circumstances at the time of the contract. Three Gorges Life Insurance informed Li Jiming that he can receive economic compensation of 93816 yuan.

In September 2022, Li Jiming applied for arbitration to the Labor Dispute Arbitration Committee of Wanzhou District, Chongqing. The arbitration committee refused to accept the application due to the qualifications of the parties involved and the fact that the application did not fall within the scope of labor disputes.

However, due to the relevant ruling being a dispute over jurisdiction between the two parties, Three Gorges Life Insurance mainly defended the jurisdiction of the case and did not respond much to the actual dispute between the two parties.

The road to preparation is bumpy

It was once said that "loans are given to employees to pay wages"

According to official website information, Three Gorges Life Insurance is a nationwide insurance and financial institution supported by the Chongqing Municipal Party Committee and Government, and approved by the State Council Insurance Regulatory Commission. It is also the first Chinese life insurance company headquartered in Chongqing.

Three Gorges Life Insurance has a registered capital of 1 billion yuan, with shareholders including Chongqing Yufu Capital Operation Group Co., Ltd., Chongqing High tech Group Co., Ltd., New Hualian Holdings Co., Ltd., Jiangsu Huaxi Tongcheng Investment Holding Group Co., Ltd., Chongqing Dima Industry Co., Ltd., and Chongqing Zhongke Construction Co., Ltd.

Among them, Chongqing Yufu Capital Operation Group Co., Ltd., known as "Chongqing Huijin" with a registered capital of 10 billion yuan, is the first local state-owned sole proprietorship comprehensive asset operation and management company approved by the Chongqing Municipal People's Government. It is listed as a key state-owned enterprise under the centralized management of the Chongqing State owned Assets Supervision and Administration Commission.

According to previous public reports, Li Jiming has many years of media work experience and has worked in multiple financial companies such as Bank of Communications, Pacific Insurance, Huatai Insurance, and Yong'an Insurance.

With keen news insight and years of financial work experience, Li Jiming believes that there is great potential to help millions of immigrants in the Three Gorges Reservoir Area solve issues such as elderly care, medical care, and re employment. Therefore, he proposed the proposal to establish Three Gorges Life Insurance. After the proposal was put forward, it received high attention from the Chongqing Municipal Party Committee and Government, and Li Jiming was recommended as the leader of the preparatory group.

Li Jiming once introduced that the road to the establishment of Three Gorges Life Insurance was bumpy, and the preparatory team had very little remaining funds. At the upcoming Spring Festival, more than 100 employees were waiting for their salaries. "There's really no other way. I can only borrow over 1.2 million yuan from the bank in my personal name to prepare for paying employees' salaries."

On December 15, 2017, Three Gorges Life Insurance obtained the opening approval and establishment permit from the former China Insurance Regulatory Commission. In the report, Li Jiming recalled that at that time, his secretary pushed a cake with longevity peaches, which made him realize that it was his birthday. "I have the same birthday as the company, which is also a great fate."

During his time working at Three Gorges Life Insurance, Li Jiming has won numerous local awards in Chongqing, such as the "Top Ten Talents and Teachers of Chongqing" in 2020.

At present, the majority of news links on the official website of Three Gorges Life Insurance regarding former Chairman Li Jiming have been deleted, and only relevant information on the board of directors has been retained; The leadership's speech and other parts are also empty.

It is worth mentioning that when the first chairman was dismissed in August 2021, Three Gorges Life Insurance also announced its intention to appoint Zhang Lumin as chairman. After just 4 months, Zhang Lumin resigned from his position as a director due to personal reasons. In April 2022, Three Gorges Life Insurance appointed Wang Kai as the Vice Chairman of the Second Board of Directors, acting as the legal representative.

In terms of performance, as a small and medium-sized life insurance company, Three Gorges Life Insurance has suffered consecutive losses since its establishment, which is still far from the expectation of "seven levels and eight profits". The 2022 annual information disclosure report shows that Three Gorges Life Insurance has a net loss of 110 million yuan, which has expanded compared to the same period last year.

At the end of the first quarter of this year, the core solvency adequacy ratio and comprehensive solvency adequacy ratio of Three Gorges Life Insurance were 80.62% and 83.73%, respectively. The comprehensive risk rating results for the third and fourth quarters of 2022 were both C. Three Gorges Life Insurance stated in its solvency report that the main risks the company currently faces are pressure on its solvency and related strategic and capitalizable risks. The company is working hard to improve its solvency.