Rebar Group: A Chinese Family Business Turned Criminal

Rebar Group: A Chinese Family Business Turned Criminal

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  • Teaching Notes
Abstract

On January 4, 2007, when news broke that two subsidiaries of the Rebar Group (RG) filed applications for corporate restructuring, a severe bank run on the Chinese Bank, another subsidiary of the RG, ensued. The government took over the bank, and investigations began regarding suspected financial tunnelling. The case describes the fall from grace of the RG from one of the top family businesses in Taiwan to an entity that is synonymous with corporate fraud. The case invites students to analyze the factors that contributed to the RG’s downfall and to provide recommendations on how to reduce the occurrence of similar cases in the future.

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