HONG KONG—When JD.com Inc.’s billionaire founder and Chief Executive Liu Qiangdong was arrested last week on suspicion of rape, his company’s board of directors was technically powerless.
That’s because the Chinese e-commerce giant’s bylaws say the board isn’t allowed to hold a formal meeting without Mr. Liu being present, or unless he recuses himself. JD.com even spells out that “any confinement against his will” wouldn’t merit an exception to this rule, although permanent mental or physical incapacity would.
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