BEIJING - Rupert Murdoch has filed for divorce from his wife, Wendi Deng, and the Chinese media is watching with great attentioin whether their ambitious female compatriot is going to get her share of the cake from her fabulously rich ex-husband.
It's likely though that many will be disappointed since it was disclosed long ago that Murdoch and Deng had signed a prenuptial agreement, which was subsequently revised twice after they were married. Murdoch has submitted his divorce application in New York State because that is the U.S. state that accords the most weight to prenuptial accords.
We do not know the specific content of the agreement, however many Chinese people can't help lamenting the idea of signing such a protocol before marriage. It's much more common in the West for a couple to envisage romantic rupture one day, and find a way beforehand to divide clearly any properties and assets.
Nevertheless, what unites both the West and China is that it's almost always rich people who sign such prenuptial protocols. Last year China amended its national Marriage Law with clauses explicitly providing the basis for how pre-marital property is to be divided. This gives Chinese courts more of a legal standard and makes such arrangements operational on an administrative level. More protection is granted to one of the two parties' pre-marital assets since during a relationship there's always one earning more than the other. It's obvious that the introduction of these judicial interpretations was driven by the wealthy.
Wang Mengying, a marriage and family law attorney in the booming southern city of Guangzhou, noted that among all the divorce cases that ended up in court, regardless of the cause of separation, the final focus of dispute was almost always property related. Whether ordinary folk or the rich and successful, none of her clients had signed a prenuptial agreement or had a pre-marital property notarization made.
From the viewpoint of a judicial practitioner, Wang is convinced that having a prenuptial agreement is better than not having one -- and can save all sides court fees in the future.
However, from a personal point of view, even Wang admitted that she'd feel vexed if her partner asked to conduct a property notarization first. "In particular if he is richer than I am, my self-esteem would be hurt."
Romance or reason, which is more important? This is no trivial business in China, where people traditionally believe that men should take on more duties in the marriage. It's notable that the recent amendment of the Marriage Law stipulates that "Upon divorce, any pre-marital asset is no longer included as an object of property division, i.e. it belongs to the original owner before the marriage. Meanwhile, real estate which was funded and bought by one of the parties' parents belongs to that party and is not to be divided."
Changes in the law perhaps will push even Chinese people to revise their concept of marriage, which has largely remained unchanged for thousands of years. In the past, marriage has been seen more as a sharing of resources between two families. Today, it has become more of a legal contract between the two wedded partners.
In terms of property, the new law reduces conflict in case of a separation. Marriage becomes like a business shared by two partners. No one is to take advantage. The common property that is accumulated after getting married can be regarded as profits. Naturally, if the business turns out to be bad, both parties share the loss too. If the couple ends up divorced, each side will take back their respective principal amount while the divorce lawyer will calculate their respective share of the commonly owned property. For instance, when Wendi Deng Murdoch beat off a man who tried to attack her husband at a court hearing about the eavesdropping scandal two years ago, the stock price of News Corp. rebounded 5% that day. So one can be sure their respective teams of lawyers are meticulously calculating how the division of this part of their properties is to be done.
Of course, it sure won't be easy to persuade all Chinese people to draw up prenuptial agreements. This is partly because the idea that a man is to provide his spouse with a home is deeply entrenched, and partly because "face" plays an extremely important role in Chinese culture. All pre-marital protocols are based on the possibility "what if we ever split...". For those who prepare to enter a happy marriage and commit to tie the knot for a lifetime in front of everybody, this is simply hard to accept emotionally or acknowledge publicly.
Eventually, what is even more disturbing for Chinese women is the fact that although Chinese law does have certain clauses that protect women's rights, the provisions lack specificity. For example, in the Chinese Marriage Law, "the party who contributes significantly to the family is to have a greater share of the compensation." However, the judgment of compensation lacks any quantitative criteria, and compensation is left to the subjective opinion of the judge. If the purchase of a house by the man is considered as a contribution doesn't the wife’s decades of maintenance of the house also count as part of the contribution?
Clearly, China's Marriage Law has not yet reached gender equality. Were our law to better protect the party who gives more of themselves -- most often the wife in a Chinese-style marriage -- I believe people would have much less antipathy about pre-marital property notarization or signing up for a prenuptial agreement.
It is today a proven fraud, nailed by the French stock market watchdog: Air Next resorted to a full range of dubious practices to raise money but the simplest of errors exposed the scam and limited the damage to investors.
PARIS — Air Next promised to use blockchain technology to revolutionize passenger transport. Should we have read something into its name? In fact, the company was talking a lot of hot air from the start. Air Next turned out to be a scam, with a fake website, false identities, fake criminal records, counterfeited bank certificates, aggressive marketing … real crooks. Thirty-five employees recruited over the summer ranked among its victims, not to mention the few investors who put money in the business.
Maud (not her real name) had always dreamed of working in a start-up. In July, she spotted an ad on Linkedin and was interviewed by videoconference — hardly unusual in the era of COVID and teleworking. She was hired very quickly and signed a permanent work contract. She resigned from her old job, happy to get started on a new adventure.
Others like Maud fell for the bait. At least ten senior managers, coming from major airlines, airports, large French and American corporations, a former police officer … all firmly believed in this project. Some quit their jobs to join; some French expats even made their way back to France.
Share capital of one billion
The story began last February, when Air Next registered with the Paris Commercial Court. The new company stated it was developing an application that would allow the purchase of airline tickets by using cryptocurrency, at unbeatable prices and with an automatic guarantee in case of cancellation or delay, via a "smart contract" system (a computer protocol that facilitates, verifies and oversees the handling of a contract).
The firm declared a share capital of one billion euros, with offices under construction at 50, Avenue des Champs Elysées, and a president, Philippe Vincent ... which was probably a usurped identity.
Last summer, Air Next started recruiting. The company also wanted to raise money to have the assets on hand to allow passenger compensation. It organized a fundraiser using an ICO, or "Initial Coin Offering", via the issuance of digital tokens, transacted in cryptocurrencies through the blockchain.
While nothing obliged him to do so, the company owner went as far as setting up a file with the AMF, France's stock market regulator which oversees this type of transaction. Seeking the market regulator stamp is optional, but when issued, it gives guarantees to those buying tokens.
The infamous typo that brought the Air Next scam down
Raising Initial Coin Offering
Then, on Sept. 30, the AMF issued an alert, by way of a press release, on the risks of fraud associated with the ICO, as it suspected some documents to be forgeries. A few hours before that, Air Next had just brought forward by several days the date of its tokens pre-sale.
For employees of the new company, it was a brutal wake-up call. They quickly understood that they had been duped, that they'd bet on the proverbial house of cards. On the investor side, the CEO didn't get beyond an initial fundraising of 150,000 euros. He was hoping to raise millions, but despite his failure, he didn't lose confidence. Challenged by one of his employees on Telegram, he admitted that "many documents provided were false", that "an error cost the life of this project."
What was the "error" he was referring to? A typo in the name of the would-be bank backing the startup. A very small one, at the bottom of the page of the false bank certificate, where the name "Edmond de Rothschild" is misspelled "Edemond".
Before the AMF's public alert, websites specializing in crypto-assets had already noted certain inconsistencies. The company had declared a share capital of 1 billion euros, which is an enormous amount. Air Next's CEO also boasted about having discovered bitcoin at a time when only a few geeks knew about cryptocurrency.
Employees and investors filed a complaint. Failing to find the general manager, Julien Leclerc — which might also be a fake name — they started looking for other culprits. They believe that if the Paris Commercial Court hadn't registered the company, no one would have been defrauded.
Beyond the handful of victims, this case is a plea for the implementation of more secure procedures, in an increasingly digital world, particularly following the pandemic. The much touted ICO market is itself a victim, and may find it hard to recover.
- Crypto Tipping Point: Is Digital Currency Too Big To Fail ... ›
- Bitcoin, Petro, Libra ... Why Cryptocurrency Isn't Really Currency ... ›
- Inside The Himalayan Hideaway Of Chinese Bitcoin Mines ... ›