Chapter 422: Chapter 422 Even If It Was Acquired, The Person In Charge Is Still Your Father’s Son
Translator: Dragon Boat Translation Editor: Dragon Boat Translation
“The company changed hands?”
[Diligent and Upward Noble Young Master’s expression changed.
He was just talking about his father’s illness; why did the topic suddenly change to the company’s situation?
The viewers were also confused.
“Could it be that my father had long seen through Zhou Yong’s wild ambitions and refused to leave his position as CEO to receive treatment in the hospital to prevent him from taking over?”
“This doesn’t make sense.”
“My dad started this company from scratch. He went from picking trash to the boss of a multi-billion-yuan company. It’s impossible for him to lose to Zhou Yong.”
“Besides, you said my dad would hand the company over to Zhou Yong.”
“Since he has decided to hand the company over to him, why should we guard against him?”
[Diligent and Upward Noble Young Master] was puzzled.
If his father saw Zhou Yong’s true colors and was worried that he would snatch the company away, why didn’t he kick Zhou Yong out of upper management?
His family’s company was a family business through and through.
Most of the internal executives were relatives, and his father had a lot of power in the company.
There was no need to go through the normal process of firing people, as one sentence was enough.
At this moment, [Diligent and Upward Noble Young Master’s analytical skills were vividly displayed.
Even though a family business has many drawbacks,
However, there was one thing that ordinary companies could not compare to.
Internal cohesion.
His relatives could live a luxurious and glorious life in front of others because of his father.
Under the premise of having common interests, no matter how capable Zhou Yong was, he couldn’t bribe a company executive who was a relative of his family.
“Dear patient, stop your wild thoughts.”
“What you think is different from the truth. Your father is not guarding against Zhou Yong.”
Chen Yu interrupted.
“Then who is he guarding against?”
[Diligent and Upward Noble Young Master] asked hurriedly.
“A large corporation several times larger than your family’s company,” Chen Yu said calmly.
“Your company looks like all is going well, but it’s actually suffering from internal and external problems.”
“Once your father is hospitalized, not only will it seriously dampen the confidence of the shareholders in the company,”
“It will also give the opposition who wants to buy your company an opportunity to take advantage of it.”
“Since last year, this large group has been continuously stealing your company’s market share.”
“In just half a year, your company’s total assets have shrunk by nearly a third.”
“During these struggles, your father realized that the other party not only wanted to seize your family’s market share,”
“They also want to annex your family’s company.”
It was just as [Diligent and Upward Noble Young Master] had analyzed.
His father had a lot of influence in the company.
Besides upper management, many of the company’s middle- and low-level employees were his relatives.
No matter what happened in the company, it would reach his ears in minutes.
“Indeed.”
[Diligent and Upward Noble Young Master] nodded. “Once, one of my security guards was late for work for two days in a row. This matter quickly reached my father’s ears.”
“He called me to his office and gave me a good scolding.”
“My father has control over the company in every aspect.”
“He knows everything that happens in the company, no matter how small it is.”
“Your family’s company has over a thousand employees,” Chen Yu said with a smile. “Your family members account for 10% of the total.”
“These people are scattered in various departments. They are equivalent to your father’s eyes and ears.”
“That’s why he knew that his competitor was contacting the shareholders privately.”
“So, he immediately analyzes the other party’s goal.”
“What did my father notice?” [Diligent and Upward Noble Young Master] asked after Chen Yu finished speaking.
“In a roundabout way, they will become a minority shareholder of your company.”
“Then, they will take over and kick your family out of the company.”
Chen Yu smiled faintly when he saw paid comments floating before his eyes.
“Lawyer Luo has already given you the answer to this question.”
[Diligent and Upward Noble Young Master’s attention had been focused on Chen Yu, so he didn’t pay attention to the comments in the chat.
Upon hearing Chen Yu’s words, [Diligent and Upward Noble Young Master] immediately scrolled through the chat.
After reading the chat, [Diligent and Upward Noble Young Master] was so shocked that he could not close his mouth after reading the paid comments sent by Lawyer Luo.
In movies and literature, there are always plots of a domineering CEO buying companies or enterprises to make his woman smile.
In reality, acquiring a company was a very complicated matter.
A secret acquisition is almost impossible.
When purchasing a listed company, once the shares exceed 5%, the identity of the acquirer must be announced and disclosed according to the law.
Otherwise, it would be illegal.
With more than 30% of the shares, all subsequent acquisition activities must be carried out in a public and supervised state.
The situation would be equally complicated if it were a limited company that was not listed.
Once there is a major change in equity, a shareholders’ meeting must be held to announce it.
The original shareholders had the right of first refusal even if the competitor wanted to acquire all the shares of the shareholders except the major shareholders in one go.
There was no theoretical possibility of achieving the goal of becoming the largest shareholder.
In the face of such a hostile acquisition, the largest shareholder would definitely not sit idly by.
Either the largest shareholder would use the preemptive right to buy the shares first or ally with other shareholders.
They could also acquire the shares of the shareholders who intended to sell their shares.
This would prevent hostile forces from entering their company.
The rules were rules, but in actual theory, there was a roundabout way.
The rival company could register a new company and buy 5% of the shares, becoming a small company shareholder.
If the rival company took a large amount of money to buy shares, it would trigger the original shareholder’s preemptive right.
So, the acquisition of shares by internal minority shareholders was a normal transfer of shares between shareholders.
It would not trigger the shareholder preemptive purchase mechanism.
“Do you understand now?” Chen Yu asked.
“The reason why your father doesn’t dare to go to the hospital for treatment is that he’s afraid that once he leaves, the other party’s goal will be achieved.”
“This kind of small-scale acquisition is hard to guard against.”
“Once the hostile company’s proxy enters your company and becomes a minority shareholder, the consequences will be unimaginable.”
[Diligent and Upward Noble Young Master’s heart was filled with ups and downs.
He did not expect the seemingly stable and orderly family business to be forced to the cliff’s edge.
“The competitor’s group is large and has a clear goal.”
“Your father doesn’t know how long he can last.”
“In order to prevent the company he built from being taken away, your father decided to hand the company over to Zhou Yong.”
“Zhou Yong is his son, with brains and skills similar to his. Perhaps he can block the opponent’s menacing attack.”
[Diligent and Upward Noble Young Master’s expression was conflicted as he asked with difficulty, “Zhou Yong… Can Zhou Yong hold on?”
Chen Yu said with a faint smile. “So what if he can’t block it? It’s just a matter of entering the right pocket from the left pocket.”
“Your father handed the company to Zhou Yong because he didn’t want the company he founded to become someone else’s.”
“Even if it’s acquired, the person in charge of this company is still your father’s son..”
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