GOME Electrical Appliances Holdings Ltd. said Thursday in a statement it has signed a memorandum of understanding with Shinning Crown Holdings Inc., a firm controlled by imprisoned Gome founder Huang Guangyu, to enlarge Gome's board to 13 directors from 11 directors.

Mr. Huang, who stepped down from the company's board because of his imprisonment, has been lobbying to appoint his allies to the board, and the agreement signals the end of a power struggle between Gome's board members and Mr. Huang for influence at one of China's biggest electronics retailers.

Under the MOU, Gome agreed to appointlawyer Zou Xiao Chun as executivedirector and Huang Yan Hong, Mr. Huang's sister, as non-executivedirector. The two appointments are subject to approval from shareholders, the company said.

'Both parties recognize that entering into this MOU and ensuring the stable development of the business will best serve the interests of the company and shareholders as a whole,' Gome said in the statement.

Huang, also known as Wong Kwong-yu in Hong Kong, is serving a 14-year prison sentence in China on charges of insider trading, illegal business dealings and bribery. He resigned as chairman of Gome in January 2009, shortly after his arrest, but has kept his stake of more than 30%, remaining the company's single largest shareholder.