Chapter 146: [Reinforcement of corporate control]

Luo Sheng paused for a moment and drank his mouth to run his throat. "In addition, the shareholders of Bluestar Technology Group should jointly adopt a new agreement today. We must jointly agree on the stocks of the previous hairstyle of Series A financing, that is, Each share of B shares has 30 voting rights, and later it is called A shares also includes all publicly traded, 1 share of 1 voting right. B shares cannot be circulated in the market and can only be sold for A shares. A shares It can never be converted back to B shares. "
The vast majority of Blue Star Technology Group's Class B shares are in the hands of founders and executives. It is worth mentioning that 12% of the Class B shares are held by SoftBank Capital, Goldman Sachs Capital, Venture Capital Fund, IDG Funds, JP Morgan and Joaquin Securities.
They each hold 2% of Class B equity.
Only when the capital is increased will the Class B equity held by the founder team be automatically converted to Class A equity.
The 2% equity held by each of the six major VCs was originally bought directly from Luo Sheng and was transferred, so it is still a Class B equity and has 20 voting rights per share.
In theory, after the equity of the founder team of Bluestar Technology Group is continuously diluted, this 12% equity may shake Luo Sheng's control of the company, because after the IPO, the equity of each shareholder will be further diluted. Sheng himself has to cash out, and the team members who are following his struggle must be cashed out, so the liquidation diluted the equity.
In fact, Luo Sheng originally transferred 12% of the equity held by his individual to cash out. In addition to his imagination, VCs trapped by Blue Star Technology had to pay to prevent him from messing with the company's assets. These VCs There are also other considerations, that is, the transferred stock is a Class B stock.
As long as the 12% Class B equity holds more than 34% of the voting rights in the company on a certain day, Luo Sheng cannot absolutely control Bluestar Technology Group, because the resolution of major matters requires more than 67% to take effect, otherwise only 34 % Cannot pass without objection.
Therefore, when the six major investors heard Luo Sheng's words, they all looked changed.
I was very angry, because at this time, the 12% of their B-shares plus the A-shares held by other VCs, even 15% of their voting rights, could not stop Luo Sheng at all.
I thought this was a foreshadowing, and it might happen some day in the future, and in the next ten years or decades.
But up to now, when hearing Luo Sheng's proposal, the six major investors suddenly felt that this was a bait to them. At first, because of a lot of factors, they were willing to give Luo Sheng money for the Class B equity. Only billions of dollars were needed to create the Cote d'Azur company.
I thought I wanted to dig a hole for Luo Sheng. I didn't expect to be clever but misunderstood. The six major investors were astonished. This young man is really savvy. His young age is not inferior to those old foxes.
What a clever ghost!
"Mr. Luo, I ca n’t understand. This is not a repeated waste of resources. When you ask for the joint establishment of a limited partnership, Percent Bai Holding Blue Star Technology Group, you have to be the GP. This has given you absolute Having controlled the power of Bluestar Technology, why reshape the equity structure of Bluestar Technology Group itself? Isn't this a waste? "Paul Watson, who came to the shareholders' meeting on behalf of Goldman Sachs, said, although he knew Luo If Sheng is determined to do this, everyone can't stop it, but he still has to say something.
The same Luo Sheng expressed the person in charge, but also explained: "Mr. Paul, I don't agree with you. The limited partnership is set up to isolate some malicious before the IPO. Once the company is listed, the stock will be in the second place. Level market circulation, none of us knows who owns how much equity of Bluestar Technology Group. If these people request today to check the company's accounts, 10% of the partners will apply for the dissolution of the company tomorrow. This is a purely disgusting thing. We need to isolate. "
"The agreement just made is to avoid too much external intervention after the company is listed, which will affect the company's development. This is to ensure that the interests of all beneficiaries of Bluestar Technology Group are not harmed."
Paul Watson was expressionless and stopped speaking. Although reluctant, there was no way to prevent Luo Sheng from strengthening control of the company.
Other shareholders looked at each other, whispered to each other, or shrugged helplessly.
When Luo Sheng proposed that agreement, it meant that 12% of the Class B shares would also be converted into 1 Class A share with 1 voting right.
The Luo Sheng proposal made the famous investors present thinking of a company-Berkshire Hathaway.
Obviously, Luo Sheng is the way to learn the of Buffett. Paul Watson, they also found that Luo Sheng is a person who pursues long-term interests instead of immediate interests. In this regard, it is exactly the same as that of Buffett.
This is the result of Qin Weimu helping Luo Sheng's staff behind the plan. He is just a clapper, but it cannot be denied that Qin Weimu also refers to the structure of Berkshire Hathaway Company in Buffett.
This is necessary. Luo Sheng knows that Wall Street will try every means to intervene and control the listed company. It is better to kick the founder out of the company and continuously ask the company to meet its quarterly revenue expectations.
When people on Wall Street have a large say in a public company, they even demand that the entire board be replaced and managed by them directly. Such tragedies are countless.
A similar major incident occurred last year. The removal of Yahoo's board on Wall Street caused a stir in 2004. This is the most typical example of the recent occurrence.
Before determining this new top-level architecture design, Qin Weimu carefully studied Buffett's successful experience and found that one of them is that people inside the company must have an absolute say.
That is, the right to vote.
Subsequently, voting began at the shareholders' meeting, with the result that the vote was passed without a doubt.
Just go through the process.
Qin Weimu had already drafted the company's articles of association and shareholder agreement, and signed on the spot after the voting.
Luo Sheng doesn't give them any chance to regret and react. Some people will refuse to sign the visa at that time. Although it will not fundamentally change anything, disputes are always annoying, and you have to devote energy to handle these shit.
After re-appointment, the face value of Blue Star Technology Group B shares is 30 times that of A shares, but the voting right is 200 times that of A shares. A shares can never be converted into B shares ~ EbookFREE.me ~ Conversely B Shares can be converted into A shares at any time.
Not only was the 12% equity of the six major investors monetized, but Luo Sheng's control of the company was further strengthened. As a result, after the strengthening of B shares, the value of each share reached tens of thousands of dollars.
This is not only for retail investors, but also for dynamic management funds. No matter how much Bluestar Technology stock an investor buys from the market, as long as Luo Sheng holds no less than 9% of the stock, he can have an absolute majority of voting rights. .
In this way, coupled with the limited partnership structure, Blue Star Technology Group went public, and it is basically impossible for Wall Street to directly interfere with the development of the company.
Luo Sheng's equity control of Bluestar Technology Group will become the object of many imitating companies in the future.
There is even a ridiculous word widely spread in the industry: If you are an entrepreneur, if you are confused on the way to start a business, please study the Bluestar Technology Group and he will tell you how to do it. This is a long-term and savvy company. The company that has the bones in it will benefit a lot if it can learn three points.
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