311: Chapter 311 Equity Battle! Who is the Second Largest Shareholder?

As Lin Chen quickly stepped down from the high platform, the cheers in the square continued.

The creditors gathered together and had already begun discussing the new company's future. Some were calculating how much dividends their shares could yield, some were wondering if they could secure a position in the company, and others had already started forming factions, hoping to create a small clique within the new company.

Zhang Hao squeezed out from the crowd and caught up to Lin Chen: "Boss, what happened?"

Lin Chen didn't answer, only walking quickly toward the command post beneath the tree of heavenly dao.

Arrogant Dragon and the young girl Morgana followed as well. Alpha's holographic projection floated beside them, its data body fluctuating slightly.

Once inside the command post, Lin Chen finally spoke:

"Alpha, bring up the abnormal data stream."

Alpha nodded and projected a light screen in the air.

On the light screen, New Era Development's equity structure chart was slowly changing. Lin Chen's 51% was as stable as Mount Tai, and the Universe Bank's 47% remained motionless. But the remaining 2%—the shares belonging to those small creditors—was being eroded by an invisible force.

"Someone is attempting to acquire this 2% stake," Alpha said. "The acquirer is an anonymous account, but the source of funds can be traced back to..."

It paused.

"The Epoch Administration Bureau."

Zhang Hao gasped: "Yuanshi? What is he trying to do?"

Lin Chen stared at the equity chart, silent for three seconds.

Then he smiled.

That smile made a chill run down Zhang Hao's spine—though he didn't know what the boss was going to do, he knew Yuanshi was in trouble.

"He wants to become the second largest shareholder by acquiring the minority shareholders' stakes," Lin Chen said. "The Universe Bank holds 47%. If he can get 2%, he'll have 49%. While it's still less than my 51%, 49% is enough to check and balance me on many decisions."

Arrogant Dragon frowned: "Check and balance? What does that mean?"

"It means if he wants to oppose a proposal, he only needs to win over a few more small shareholders to reach over 50%," Lin Chen explained. "At that point, I, as the Chairman, would become a mere figurehead."

The young girl Morgana asked: "Then what should we do?"

Lin Chen did not answer.

He opened the system and began operating it.

Three seconds later, the communicators of all the small creditors simultaneously received a message:

「Emergency Notice: New Era Development will hold an extraordinary general meeting in one hour to discuss equity distribution matters. All shareholders holding 0.1% or more are requested to attend on time. Those absent will be deemed to have waived their rights. — Lin Chen」

Zhang Hao was stunned: "Boss, why are you calling a meeting?"

Lin Chen glanced at him.

"An equity war, of course, must be fought at a shareholders' meeting."

An hour later, the command post beneath the tree of heavenly dao had been temporarily converted into a conference room.

The space, which could accommodate three hundred people, was packed to the brim. All the small creditors holding 0.1% or more had come, their faces filled with excitement and tension. This was the first time in their lives they were attending a shareholders' meeting of this level, and the new company had only been established for an hour.

Golden Abacus sat in the front row, his expression calm. He was the second largest shareholder, and his 47% stake kept him as stable as a mountain.

Lin Chen stood on the stage and looked around.

"Everyone, I have gathered you today because there is something that needs to be announced."

He opened the equity structure chart and projected it into the air.

"This is the current equity structure of New Era Development. I hold 51%, the Universe Bank holds 47%, and you all combined hold 2%."

Someone in the audience raised their hand: "Chairman Lin, this 2% is split among all of us, averaging only 0.00-something percent per person. What is there to talk about?"

Lin Chen smiled.

"The problem lies exactly within this 2%."

He zoomed in on the equity chart, pointing to the 2% area.

"Just now, someone attempted to acquire this 2% stake. The acquirer is an anonymous account, but the source of funds has been identified—the Epoch Administration Bureau."

The room erupted in an uproar.

"Yuanshi? What is he trying to do?"

"He's buying our shares? Doesn't that mean we'll become his people?"

"No way! We can't sell!"

Lin Chen raised his hand, signaling for everyone to be quiet.

"Everyone, you can certainly choose not to sell. But the question is, if Yuanshi offers a high price, can you resist selling?"

The audience fell silent.

Lin Chen continued: "Therefore, I have a suggestion."

He opened a new document and projected it into the air.

【Equity Structure Adjustment Proposal】

1. Split the original shares: Lin Chen retains 51% controlling interest, the remaining 49% will be redistributed.

2. Establish a 'Preferred Stock' mechanism: shareholders holding Preferred Stock enjoy priority dividend rights but have no voting rights.

3. Establish a 'Golden Share' mechanism: Lin Chen holds one Golden Share, possessing a one-vote veto on major decisions.

4. All minority shareholders' stakes can be voluntarily converted into Preferred Stock. After conversion, they can enjoy a higher dividend ratio but lose voting rights.

5. For those who do not convert, they will continue to hold common stock, retaining voting rights, but with a slightly lower dividend ratio.

The audience instantly exploded into a frenzy.

"Preferred Stock? Voting rights gone? Doesn't that make us figureheads?"

"But the dividends are higher..."

"What if the company loses money? What's the point of high dividends then?"

Arguments broke out one after another.

Golden Abacus stood up and spoke unhurriedly:

"Everyone, I have a question."

Lin Chen looked at him.

Golden Abacus asked: "Is the Universe Bank's 47% common stock or Preferred Stock?"

Lin Chen smiled.

"Common stock. You are the second largest shareholder; you should have voting rights."

Golden Abacus nodded and sat back down.

When the small creditors heard this, their eyes lit up—if even the Universe Bank was keeping common stock, why should they convert to Preferred Stock?

Lin Chen looked at their expressions and knew what they were thinking.

"Everyone, I know what you're thinking. If the Universe Bank isn't converting, why should you?"

He paused, smiling meaningfully:

"But have you considered that the Universe Bank has 47% and can contend with my 51%? You only have 0.00-something percent; what can you contend with?"

The audience fell silent.

Lin Chen continued: "If Yuanshi acquires your shares, he will have 49%. At that time, whatever he wants to do, he only needs to win over a few more small shareholders to challenge me. Do you think, at that point, how much dividends you will be able to get?"

"Will Yuanshi distribute them to you? Or will he swallow all the profits?"

The small creditors' faces changed.

A middle-aged man stood up and asked through gritted teeth: "Chairman Lin, if we convert to Preferred Stock, how much higher will the dividends be?"

Lin Chen opened a set of calculation data.

"Common stock, expected annual dividend rate 3%-5%. Preferred Stock, annual dividend rate 8%-10%."

"And—if preferred shareholders want to exit in the future, The Group promises to buy back the shares at the original price."

The audience erupted again.

8%-10%! Double that of common stock!

And it can be bought back at the original price! It's a guaranteed profit!

"I'll convert!"

"I'll convert too!"

"Count me in!"

Three minutes later, 97% of the 2% minority shareholders chose to convert to Preferred Stock.

The remaining 3% were still hesitating, but it no longer affected the overall situation.

Lin Chen looked at the statistical results and smiled.

"Good. From now on, the equity structure of New Era Development is: Lin Chen 51% (including the Golden Share), Universe Bank 47% (common stock), and preferred shareholders 2% (no voting rights)."

He looked at Golden Abacus.

"President Jin, you are the sole second largest shareholder now. You'll have to put in more effort on the company's major decisions in the future."

Golden Abacus smiled.

There was a hint of helplessness in that smile, but also a hint of admiration.

"Lin Chen, that move of yours was truly brilliant."

"Using Preferred Stock to reclaim all voting rights, now no one can shake your control."

Lin Chen nodded.

"So, happy cooperating?"

Golden Abacus reached out his hand.

"Happy cooperating."

The two hands shook.

Applause rang out throughout the hall.

But just then, Alpha's voice suddenly rang out:

"Boss, a new abnormal data stream has been detected."

Lin Chen frowned.

"Source?"

"The Epoch Administration Bureau. But this time it's not an equity acquisition, it's..."

Alpha paused, its voice becoming solemn:

"It's an equity pledge. Yuanshi used the Administration Bureau's assets as collateral to borrow a sum of money from the black market. Then, through an agent, he is acquiring that 3% of shares that haven't converted to Preferred Stock."

Lin Chen's eyes narrowed.

"Where is that 3% now?"

"Still in those people's hands," Alpha said. "But they are hesitating. Yuanshi's bid is 30% higher than the market price."

Lin Chen was silent for a second.

Then he smiled.

"Tell them I'll offer 50% higher."

Alpha was stunned: "Boss, you..."

"Go do it."

Three seconds later, Alpha reported: "All of that 3% have chosen to sell to you."

Lin Chen nodded.

"Now, what is my shareholding?"

"Including this 3%, it's 54%. Of that, 51% is controlling interest and 3% is common stock."

Lin Chen looked at that number and smiled with satisfaction.

"Yuanshi wants to be the second largest shareholder? Let him keep dreaming."

Below the stage, those small creditors watched this scene, completely awestruck.

Golden Abacus walked to Lin Chen's side and whispered:

"Lin Chen, where did the money for that 50% premium just now come from?"

Lin Chen looked at him and smiled.

"From New Era Development's account."

Golden Abacus was stunned: "Isn't that the company's money?"

"The company is mine, and what's mine is the company's," Lin Chen shrugged. "Is there a problem?"

Golden Abacus was silent for three seconds.

Then he laughed.

"No problem. You're the boss, you call the shots."

Outside the window, the starlight was brilliant.

The equity war had come to a temporary close.

But Lin Chen knew Yuanshi wouldn't just let it go.

The real war had only just begun.