"A conference call?" Lu Feng frowned, staring at him as he asked, "The board meeting should be initiated by me. What is he trying to do? He's just making things up!"
“I’m sorry, but according to the board’s articles of association, anyone holding more than 40% of the shares is entitled to initiate a board meeting. We notified some members yesterday, and we’re informing you today,” Goodley said calmly.
Lu Feng could tell that this person was up to no good, so he asked, "What will be discussed at this meeting?"
“I’m not sure about that. Someone from administration will make arrangements for you in an hour.” Goodley said, then turned and walked away.
Lu Feng called Wei Yandan and the others over and explained the situation. They all felt that something was wrong; there was no precedent for this, and there was nothing that warranted a board meeting to discuss it.
"Let's wait and see what he's up to."
An hour later, Lu Feng led several people to the conference room. Several phones were already connected, and various sounds came through, making it quite noisy.
"Is everyone here? It's already evening here. Let's start the meeting if everyone's here." John's voice came through the phone. He said, "There's only one thing at this board meeting. As investors, we believe the current contract is very unfavorable to us. Moreover, since the investment, the management of Jiafeng Group, represented by Lu Feng, has not met our expectations..."
"Wait a minute, what do you mean by not meeting the investors' expectations?" Lu Feng interrupted him and asked, "Jiafeng has been expanding rapidly over the past two years. Market share, product updates and iterations, sales channel expansion—which one hasn't been progressing at breakneck speed?"
"President Lu, please let me finish. This is not my idea, but the headquarters' idea. In the first half of this year, our investment strategy was changing, and our global investment plan changed. So, we are now facing two choices. First, we can sell the Jiafeng shares we hold, because under our evaluation system, they no longer have a future and are classified as junk shares."
Upon hearing this, the expressions of the people present changed, and they all looked at Lu Feng. They had thought it was something that would happen at the end of the year, but they didn't expect it to have started already.
“According to the agreed agreement, your shares will only be eligible for trading after three years, which is the end of next year. Furthermore, our group has a right of first refusal.” Lu Feng said in a deep voice, “To realize the share transfer, there is another basic condition, which is to transfer the remaining funds. Your investment is not yet complete.”
“It seems Mr. Lu is not quite in agreement. Let’s try another approach. We’ll invest another billion US dollars to acquire all the shares held by Mr. Lu and the management team. That is, the original plan of acquiring 35% of the shares for 3.5 billion US dollars will be changed to acquiring 75% of the shares for 3.5 billion US dollars,” John proposed.
"Impossible!! Absolutely impossible!" Lu Feng rejected the offer outright, saying, "Do you know how much Jiafeng's assets are right now? Your people work in finance. Buying such a large company for 3.5 billion US dollars? There's no such thing in the world."
"Then increase the number of investors and dilute the equity!"
"That's impossible. The contract stipulates that the equity will not be diluted within three years. We are trading original shares," Lu Feng continued to refute.
John on the phone seemed to have anticipated that these suggestions would be rejected, and then proposed, "Jiafeng hasn't been able to generate any profits for the past few years. You used to say that market expansion required maintaining competitiveness and investing in various hardware facilities. Now that the initial investments are complete, it should be profitable this year, right?"
"I'd like to report to everyone that Jiafeng Group achieved profitability in the first half of this year, with a net profit of 520 million RMB," Lu Feng replied.
“Then I propose that we set a target for the entire management team this year: a net profit of 2 billion yuan for the whole year. Only in this way can we strengthen our investment confidence. Let’s all vote on this. Also, please have the finance department audit all of Mr. Lu’s financial reimbursements recently,” John said in a deep voice.
“The target for total profit was set at the board meeting at the beginning of the year, and it is not mandatory,” Lu Feng retorted.
“If it was decided by the board of directors, then of course it is not a mandatory requirement, but this clause is in my gift agreement.”
"A gift agreement?" Lu Feng sensed something was wrong.
“That private jet, you signed the gift agreement, but you were too busy? The cover is written in Chinese as a gift agreement, not an unconditional gift agreement. Article 25, Section 3 and Article 37, Section 6 are related clauses. They stipulate that as long as you accept the gift, it will take effect if the board of directors votes and the vote is equal to or greater than 50%.” John said slowly, “This is a conditional betting agreement.”
Lu Feng sat there, completely numb, and subconsciously exclaimed, "Fuck your mother!"
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