Darkstone Code-Chapter 926 - 924: Majority Shareholder

"I... heard that Darkstone Security plans to build their own intelligence network," the older senior Special Agent casually brought up this topic.

The atmosphere in the room instantly changed.

If earlier they were just discussing Darkstone Security’s benefits and subsidies, which they found a bit tantalizing but not too tempting, now what was on their minds was known only to them.

Darkstone Security’s main business currently is providing armed protection and armed strikes, both tasks requiring experts on the battlefield, soldiers trained rigorously, rather than Special Agents.

Though the Special Agents were envious, expressing admiration both verbally and internally, they might not be willing to go if actually given the opportunity.

The reason is simple: once there, they’d truly be fighting for their lives, and combat on the battlefield is a wholly different beast from their current work.

One requires advancing through battlefields riddled with bullets and shrapnel, while the other involves elegantly presenting credentials in high-end attire.

Yet with the older senior Special Agent’s words, both people’s moods began rapidly changing.

They’re familiar with intelligence work, as part of the Security Committee’s Special Agent’s duties includes intelligence gathering, which also encompasses the purge of hostile Special Agents.

If Darkstone Security truly intends to build their own intelligence system, undoubtedly, they’ll need a large number of exceptional Special Agents to serve them.

Then what price will they offer these Special Agents?

The quiet room remained silent, with only heavily drawn breaths persisting for quite a while...

Quite a while!

Early the next morning, the Financial Supervisory Commission and the exchange simultaneously announced the "Every Moment Equity Change Notice" to the financial market.

This is also an integral part of the Federation’s financial order, aiming to prevent capitalists from overtly manipulating listed company’s equities, so the Federation Government enacted several bills to strengthen the management system of listed companies.

Changes in non-tradable shares must be declared to the Financial Supervisory Commission before the fact, and if large quantities of shares are traded, personnel from the Financial Supervisory Commission must be present.

A change involving 25% of non-tradable shares certainly requires notifying shareholders and financial investors.

And this is all happening during a hostile takeover period. According to the Federation’s financial rules, Lynch’s current share holdings confirm he is now the largest shareholder of the company.

He has the right to convene a shareholder meeting focusing on delisting for discussion, vote, and decision on whether Every Moment should delist.

If the shareholder meeting approves, then very soon Every Moment will enter the delisting process, clearing out scattered accounts.

All scattered tradable stock accounts will be cleared, repurchased at about 130% to 200% of the current market price, according to the relevant agreement signed when Every Moment was initially listed.

Of course, companies that initiated the hostile takeover are not among those to be cleared; their tradable shares will become non-tradable after delisting and retain voting rights.

Once successfully delisted, Lynch, as the majority shareholder without dispute, will be eligible to subscribe to even more shares.

This is why many hostile takeover wars see parties aggressively pressing down to collect more shares at the start. Once a company temporarily delists due to the takeover war, those stocks that shareholders are unwilling to release will all surface.

This allows hostile acquirers to take another step forward in securing more shares, gaining greater influence over the company’s discourse.

If the company evaluates shares based on current proportions during the subscription of cleared tradable shares, Lynch will obtain at least over 5% of the remaining about 10% tradable shares.

This means that in the battle for shares in Every Moment Company, Lynch, as a defensive party rather than an initiating party, has instantly acquired more than 50% of total equity.

In some aspects, this hostile takeover up to this point has indeed concluded, and it’s a failed acquisition.

Simultaneously, his power will further expand. If he seizes the opportunity to purchase additional shares from small shareholders, his equity could surpass two-thirds, forming absolute control, the so-called "majority."

This will make him overwhelmingly advantageous in the shareholder meeting and board of directors; although he may not achieve certain approval with one vote, one-vote vetoes will become exceedingly easy.

He might even have the chance to initiate privatization voting and attempt to pass it.

Of course, Lynch is impossible to pursue such an action—the privatization of a company valued over a billion, and an antitrust investigation would knock on the door the next day. This is the rule established by the Federation’s capitalists.

"You can make money, but you must take us along; whoever breaks the rule, we’ll dismantle them!"

The announcement posted within the exchange immediately sparked huge public debate, and discussions about Lynch again became the core of the public conversation.

Media rushed to report anything related to Lynch, regardless of how Lynch achieved this; he at least proves one thing to people: he is wealthy.

Every Moment’s shares skyrocketed, rapidly crossing the $300 million threshold and pushing towards $400 million.

This results mainly from the currently limited tradable shares. When demand exceeds supply and the market becomes activated, prices surge wildly!

As the outside world discusses matters relating to Lynch, speculating on how wealthy he might be, Lynch is at the Every Moment headquarters building.

The President is temporarily unable to perform his duties due to injuries inflicted by kidnappers, so work is currently handled by the board of directors.

The board of directors and shareholder meetings differ.

Holding 1% of shares makes one a shareholder; even having 0.00001% makes one a shareholder. Everyone who purchases company stock is a shareholder.

During shareholder meetings, the company will actively invite investors holding a certain number of shares to attend, listen, or participate in the meeting.

If not invited, one can voluntarily attend.

The board of directors acts as the company’s decision-making body, responsible for daily operations, while both are essentially unrelated.

As the biggest shareholder currently, Lynch can impact the board of directors significantly, even if not listed among them, potentially altering its structure.

"Mr. Lynch, earlier... Mr. Sanchez informed us that the Spring Fair will be reconvened next month; should we...," someone Lynch didn’t recognize spoke, able to see his name through the badge.

Two days ago, Sanchez told board members that plans for the Spring Fair were unchanged and it would be held more grandly.

But now, Sanchez is missing; the President transferred stock to Future Light Investment Company and Lynch personally, rendering Lynch the company’s largest shareholder.

The company now stands backed not by a Mariluo General but by Lynch, a Federation Merchant.

Thus, should Every Moment participate in this Spring Fair hosted by the Mariluo Warlords, should preparations for promotion proceed?

Numerous issues await Lynch’s response, including raw material issues, as the company and its backing have detached, leaving Every Moment’s inventory enough only until summer, two to three months.

If no new sources for raw materials are found after inventory depletes, Every Moment faces a life-or-death choice.

Producing no goods is trivial; the orders and potential compensatory claims are what truly threaten!

Should supply fall short, expecting those end sales to exempt the company from responsibility and refrain from claiming compensation?

No kidding; they will line up with Lawyers demanding huge sums as compensation!

Then they would sign a new supply agreement with the company, raising penalties even higher.

Several urgent problems require solutions; some Mariluo people in mid to upper management are quite concerned about Every Moment’s future.

No one knows where Every Moment’s future leads, least of all now, unable to see beyond the present. After a while without Lynch speaking, a board member called out to him.

"Mr. Lynch, are you listening?"

Lynch shifted his head slightly, his eyes regaining focus, "Sorry, I’m listening. Please continue."

The speaker smiled as he repeated his previous words.

Lynch shook his head, "Inform all our major clients about the company’s shareholding change: it’s now a purely Federation origin enterprise."

"The Spring Fair isn’t hosted and promoted by us; with some company changes, we won’t hold any meet-and-greet type events for now."

"Regarding whether such future events occur, I’ll consider once current work wraps."

Board members promptly noted these decisions, given them by Lynch, offering greater persuasion; at least some wealthy individuals won’t express dissatisfaction, as it’s Lynch’s personal resolution.

"Regarding tobacco raw materials, I’ll address this. Let me first ask, do we have any professionals in the company?"

He added specific conditions, "Specifically, those who have at least worked in tobacco cultivation, researched tobacco worldwide, like expert scholars?"

The head of research nodded, "Yes, Mr. Lynch, Every Moment has a complete research system ensuring our products remain competitive. We’ve sponsored some experts and professors in relevant industries for long-term project research. If you want to meet them, it’s always possible."

In the Federation, large companies have similar project listings or fund sponsorships; there’s a saying with representative meaning:

"You may not race in the front, but you must know who’s ahead!"

The sponsorships ensure knowledge of who’s leading.

These professors and scholars work daily with advanced technologies, and having taken corporate money, should naturally contribute to the enterprise.

And many experts strive toward making a name, seeking projects, and exploiting students.

"Arrange for me to meet them..."

Just then, the former President’s Secretary knocked on the door, standing outside the conference room, "Mr. Lynch, you have a call..."