Car-hailing Driver: Rewards from Complaints-Chapter 314 - 177: All the Big Shots Came for Yang Chen
Actually, this is a wise choice. It’s better than many public companies ending up delisting after losses, where even the boss can’t cash out and leave.
Early in the morning, Yang Chen had just dropped off two passengers when he received a call from the Secretary of Baoqing Restaurant Group, inviting him to attend the shareholder meeting at the group headquarters’ conference room at nine o’clock tomorrow morning.
Yang Chen thought perhaps Li Baoqing was planning to clean house, and happily agreed.
At eleven at night, Chen Chen brought over the usual grouper and lobster.
Yang Chen was stunned when he received a call from Yang Le.
What is Li Baoqing up to?
Does he absolutely trust his brother-in-law or just not care at all?
Regardless, Yang Chen had already gathered the evidence, just waiting to see how Li Baoqing and his wife would perform at the shareholder meeting tomorrow.
The shareholder meeting at Baoqing Restaurant’s headquarters conference room.
Li Baoqing and his wife proposed to absorb capital from four investors, but their shares would remain unchanged, while other shareholders’ equity would be diluted.
Of course, the other shareholders were not having it. This isn’t how it’s supposed to work.
To compensate the other shareholders, Li Baoqing said he would take out half the funds to compensate them according to their shareholdings, with the remaining money to be used to expand the stores and so on.
Additionally, he and his wife would also symbolically invest some funds in the company, but exactly how much would be up to them.
Damn, the use of the word "symbolic" is perfect. They can give however much they want, can’t they?
With more stores and better performance, the company’s valuation can rise post-IPO, making everyone’s shares more valuable, and everyone can cash out a huge amount then.
Apart from Yang Chen, other shareholders hold relatively small percentages, and they barely have any influence over company decisions. Their only hope is to cash out after the company goes public.
So, after some persuasion from Li Baoqing and his wife, the other minor shareholders tacitly accepted the proposal.
Now, only Yang Chen hadn’t stated his position.
Frankly speaking, this doesn’t significantly affect the other small shareholders.
They never had a say and are just waiting to cash out after going public, so this doesn’t impact them.
But Yang Chen is different.
Sure, he usually doesn’t get involved in the company’s decisions, but that’s because he voluntarily chooses not to, not because he lacks the right to.
However, once his shares get diluted, he truly won’t have the right to.
"Not having a sword and having one but not using it are two different things."
If they want to dilute Yang Chen’s shares under the guise of absorbing capital investment, taking away his sword, then Yang Chen won’t agree!
Li Baoqing smiled and asked, "Mr. Yang, what’s your take?"
Yang Chen: "Of course, I disagree! Either your shares shrink proportionately with mine, or none of our shares change. I won’t accept a situation where your shares remain the same, and mine get reduced. You can’t just symbolically put in some money and expect your shareholding to remain the same, so why can’t I do the same and keep my shares unchanged?"
Li Baoqing’s smile slowly faded away.
Zhang Juan sneered and said, "Mr. Yang, you should be clear about your position. You’re just a 32% minority shareholder. As long as the other shareholders agree, you have to agree as well. The restaurant was started by us, and we built it up slowly. We must maintain a 51% bottom line in shares; surely you understand that, right? Plus, we’re not making you get diluted for nothing; we’re compensating you with cash."
Yang Chen: "I don’t want cash compensation. I’m waiting to cash out after the company goes public too. How much is the compensation now anyway? After going public, the cashing out could be tenfold or more. Why should I accept your proposal?"
Li Baoqing: "You only hold 32% of the shares, and there are still 68% out there. As long as the 68% agree, your disagreement doesn’t matter. More than two-thirds of the shareholders agreeing is enough."
The other minor shareholders quickly urged Yang Chen to see the bigger picture. Everyone’s ultimate goal is to cash out after going public. As long as the final amount they cash out isn’t lessened, why worry about the number of shares?
Yang Chen’s attitude was very firm, saying, "No matter what you say, I still disagree!"
Li Baoqing chuckled and said, "No problem, we’ll put it to a vote. Shareholders who agree with my proposal just now, please raise your hands."
As expected, all shareholders except Yang Chen raised their hands in agreement.
Li Baoqing: "Haha... Mr. Yang, I’m sorry, but 68% of the shares agree, more than two-thirds, so the proposal is passed."
Yang Chen said nothing.
Zhang Juan: "Haha... On Friday night, we’re holding Baoqing Restaurant’s 20th-anniversary celebration at the main hall of the headquarters, and we’ll also invite representatives from the four investing institutions. As shareholders, you must attend. No problem, right?"
Other shareholders nodded with a smile to express that there was no problem and promised to attend personally.
Yang Chen still said nothing.
Li Baoqing: "Mr. Yang, what do you say?"
Yang Chen: "I’m a shareholder, so obviously I must attend. I’ll be sure to bring a big gift then, to celebrate the 20th anniversary of Baoqing Restaurant!"
"Haha..." Everyone burst into laughter.
Li Baoqing and Zhang Juan were secretly pleased, thinking it was so easy to dilute Yang Chen’s shares while keeping theirs unchanged, and they could also get a share of the capital from the four institutions. It’s practically a huge win!
Yang Chen had initially hoped that Li Baoqing would handle his brother-in-law’s issues, and he could remain a hands-off boss.
But now, it’s different. He doesn’t have any plans, but Li Baoqing and his wife seem to have plans for him by trying to dilute his shares this way.
