Reborn as a tycoon in Hong Kong

January 20, 1978.

Lin Baicheng came to Hutchison Whampoa again. Today Hutchison Whampoa held a board meeting.

Hutchison Whampoa has a total of nine board seats. Major shareholders Qi Dezun family and HSBC each occupy two seats. Among them, Richard Su and Chen Xinghan in the management occupy one director seat each of Qi Dezun family and HSBC, leaving two The directors are Jardine and a British investor.

Jardine Matheson holds 3% of Hutchison Whampoa, which is not much, but it is already the largest shareholding among individual shareholders. Coupled with the strength of Jardine Matheson, it has one director quota.

Another British shareholder, Bob, holds exactly 5% of the shares. Although the shareholding is not concentrated, he has a directorship and he personally serves as the director of the company.

After the board meeting, Lin Baicheng automatically became a director of Hutchison Whampoa and became the chairman of the board of directors of Hutchison Whampoa. Who holds the most shares in Hutchison Whampoa.

In addition, because HSBC sold all Hutchison Whampoa shares to Lin Baicheng, HSBC's two directorships were transferred to Lin Baicheng. If Lin Baicheng wants to nominate a director of his choice, he can completely cancel Chen Xinghan's director title and nominate his person.

At this board meeting, all directors came and no one was absent.

"I am very honored to be the chairman of the board of directors of Hutchison Whampoa. I also ask all directors and the shareholders represented by each director to rest assured that I will definitely develop Hutchison Whampoa and create more profits to reward all shareholders."

"This is a proposal of mine, regarding the stock ownership incentive plan for management and outstanding employees. I hope to get the support of all directors."

Lin Baicheng said and motioned to Cheng Yufeng, who was sitting not far away, and Cheng Yufeng distributed the copied documents to the directors.

Wei Li and other management have seen it, so it is mainly for other directors to see.

After a moment, Bob frowned slightly and said: "Chairman Lin, this plan is unnecessary. I admit that this incentive plan can mobilize the enthusiasm of the management, but it will also cost the company a lot of money, and the interests of all shareholders will be damaged. Without Before the incentive plan, the company was still running well, and I think there is no need to do anything extra."

"Director Bob, how could this be unnecessary?"

After hearing this, Lin Baicheng explained: "The purpose of this incentive plan is to retain talents for the company, so that these talents can grow with the company and contribute to the company's development. The better the company develops, the more likely they are to receive share awards. At the same time, The shares they receive as rewards will be more valuable.”

"Furthermore, we use 20% of the company's profits to buy stocks, and this profit excludes the sale of a large number of assets. Only profits from operations are included. There is no need to worry about management selling the company's assets in order to look good in short-term statements. .”

"No matter what, the directors and I are still watching, so there is no need to worry about the management messing around. You know, the sale of any important assets cannot take effect without the approval of me, the chairman of the board of directors."

As early as when Cheng Yufeng was asked to formulate the equity incentive plan, Lin Baicheng asked Cheng Yufeng to block all kinds of loopholes, which would at least allow the management to stay in the company for more than five years, unless the executive did not want the shares he received. .

It’s good to be able to keep outstanding talents in the company for more than five years. If you want people to work for the company for a lifetime, it’s almost the same if you switch to a Japanese company. Moreover, those who will work in a company for a lifetime are usually low-level social workers. Talents with ability will face Poaching, or even someone starting their own business is possible.

With the support of the management, Lin Baicheng's proposal was passed without any surprise.

Lin Baicheng continued to submit the motion: "This is the next motion. I have decided to borrow HK$500 million from HSBC to supplement the company's cash flow and use it to develop the company."

The director representing Jardine Matheson's interests immediately said: "Chairman Lin, the company's liabilities already amount to HK$1.3 billion. Is it too much to borrow another HK$500 million?"

"The company itself has to pay interest on a large number of loans every year. It is unnecessary to add another HK$500 million in loans." Shareholders representing Qi Dezun's interests also said.

Bob even said directly: "I oppose this motion. The company's current loans are enough. There is no need to borrow more loans from banks, and it will increase the burden on the company."

"If the company wants to develop, it needs more funds. The company's liabilities are indeed quite large, but this is not a reason not to borrow money. As long as there is a need for loans, we should be bolder." Lin Baicheng responded.

Bob said solemnly: "Chairman Lin, I think you need to think about it again. Even if you want a loan, you must at least wait until the company's short-term liabilities are paid off. Otherwise, the company's profits this year will only be enough to repay the bank interest." ”

"Dear directors, the purpose of borrowing money from the bank is to develop the company and make money. Therefore, the company's revenue and profit this year will not be affected by this loan."

"That's all I've said, let's have a vote."

Lin Baicheng said and looked at Wei Li and the other five people. It didn't actually matter whether the motion could be passed this time, but he could see whether Wei Li and other management really supported him. If someone was disobedient, then he It’s time to take action later.

"I agree with Mr. Lin's motion!" "I agree too!"

Wei Li and others were very sensible, and they all agreed with Lin Baicheng's motion, and the motion was passed.

Wei Li and others knew very well that Lin Baicheng was the company's largest shareholder and chairman of the board of directors, and sooner or later the company would run according to his will. If you can't stand it, you can just leave. Backstabbing makes no sense. After all, the chairman of the board of directors can remove any director whose equity is less than 15%.

Only if the equity of a certain listed company exceeds 15%, you will be granted a 100% director quota. No approval from the board of directors is required, and objections from the chairman of the board of directors are useless. This is the right granted to major shareholders by the "Company Law" for the purpose of protection. interests of major shareholders.

Bob and others disagreed, but it was useless because more directors agreed and Lin Baicheng's motion was passed.

Bob and the others have finally figured out that the board of directors has been controlled by Lin Baicheng, the major shareholder. From now on, the development of Hutchison Whampoa must be under Lin Baicheng's direction. Now they only have two choices, either let Lin Baicheng make the decision and be a bystander before Lin Baicheng makes a big mistake; or sell their shares and let Lin Baicheng play by himself.

How to choose, Bob and others did not make up their minds immediately. They must take a look to see how Hutchison Whampoa develops in the next period of time, and then make judgments based on the development.

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