Chapter: 4458

Fei Ke Xin asked anxiously: "So do you think my proposed solution is satisfactory to you?"

Yang Chen spoke seriously: "I think you've handled it well enough already. With your impeccable handling, I believe the Fei family will soon be able to shake off the shadow of Fei Hao Yang's troubles."

Fei Ke Xin felt relieved and gained a few more blushes hearing Yang Chen's praise.

Therefore, she told Yang Chen: "Thank you for your recognition. I will complete the verification of victim data and compensation payment as soon as possible."

"Okay." Yang Chen paused slightly before asking her: "Now that you've officially become the head of the Fei family, what are your plans next?"

Fei Ke Xin said: "I have only planned two things recently. The first thing is to solve the mess left by Fei Hao Yang; and the second thing is to quickly familiarize myself with the group's affairs and tidy up."

Yang Chen advised: "Actually, your top priority right now isn't to familiarize yourself with business, but to clean up the team."

"Fei Ke Xin asked anxiously: 'Mr. Yang, do you mean that...?'"

Yang Chen reminded her: 'Don't forget, now the board members of the Fei family are the same people who drove your grandfather out of office back then, and as the new head of the family, your top priority is to recover their voting rights and veto power in the board. Only then will your position be most secure.'"

Fei Ke Xin expressed some concern: 'The board members, excluding the direct family members, are mostly relatives and people who have been loyal to the family. I've just taken over as head of the company, and the group's smooth operation still relies on them. If I were to take action against them now, they might gang up against me or simply refuse to cooperate.'"

Yang Chen spoke seriously: 'These people took a wrong step once before. Now that you're the new head of the family, they must be extremely nervous, fearing you'll settle scores with them later on. So, at this moment, you absolutely cannot let them feel like they can just relax and do nothing. You must clear up the accounts from before immediately, or else if you don't take action now, they'll think that taking a wrong step has no consequences, and next time they'll be even more reckless.'"

As he spoke, Yang Chen added: 'Right now, you're facing two extreme options: either take this opportunity to thoroughly reprimand them and make them fear you, or let them use this chance to see your weaknesses and plot against you in the future. Except for these two possibilities, it's almost zero that they'll collaborate with you and put aside past grievances.'"

Fei Ke Xin fell silent at once.

She knew Yang Chen was right.

At this moment, she should indeed be tougher and establish the authority of the family head.

However, taking on the entire board by herself made her feel a bit uneasy, unsure of where to start.

Yang Chen spoke up then: 'In my experience, most companies have a proportional relationship between shares and voting rights. If one person holds 10% of the shares, they'll have 10% of the voting rights too. And if someone holds over 51% of the shares, their voting power will also be over 51%. In theory, that's absolute control for the major shareholder, right?'

"She knew Yang Chen was right. At this moment, she should indeed be tougher and establish the authority of the family head. However, taking on the entire board by herself made her feel a bit uneasy, unsure of where to start.

Yang Chen spoke up then: 'In my experience, most companies have a proportional relationship between shares and voting rights. If one person holds 10% of the shares, they'll have 10% of the voting rights too. And if someone holds over 51% of the shares, their voting power will also be over 51%. In theory, that's absolute control for the major shareholder, right?'

'No mistake, Mr. Ye,' Fu Ke Xin said busily. 'That's exactly it.'

'Mostly big groups have this problem due to various reasons,' Yang Chen added. 'For instance, some companies have a huge number of shareholders and are listed on the stock market, so their shares are diluted greatly. In many cases, the largest shareholder only holds 20-30% of the shares.'

'Yes,' Fu Ke Xin said truthfully. 'Mostly publicly traded companies are like that. Take Apple for example, whose biggest shareholder, First Investment Group, only holds around 7% of its shares.'

'Then in this kind of situation, you must implement a dual-class share system to take away the voting rights without depriving other shareholders of their stock rights,' Yang Chen said. 'Even if you can't achieve absolute control with more than 51%, at least you should get hold of more than 51% of the voting rights. Only then can you ensure that others cannot undermine your foundation.'

He added, 'Remember, today is when those shareholders are most afraid of you. No matter whether you make them pay the price or not, they will all feel a sense of relief after today. So you must seize this opportunity.'

Fu Ke Xin listened until she was completely stunned. JrNovels.com