Knowing that the Lu family was interested in cooperation, she asked Song Zhiqing to inform Li Jianguo and Xiao Heng that the food factory was now managed by Xiao Heng.
Wenwen introduced them, repeated what she had just said, and gave the plan to Li Jianguo for him to read carefully.
After reading it, Li Jianguo handed it to Xiao Heng, who read it carefully word by word.
Wenwen saw Xiao Heng put down the business plan. "Shareholders' liability is limited to the amount of their shares, and they will not be personally liable for the company's debts."
Lu Zhao understood. "That is, even if the food factory goes bankrupt in the future, shareholders only need to deduct or compensate according to their shareholding."
Wenwen nodded. "This is the benefit of dispersed equity. If the equity is concentrated in one person's hands, poor management will lead to bankruptcy."
Xiao Heng continued, "It's a joint-stock system. If the factory makes money, the shareholders will receive dividends based on their shares."
Wenwen continued: "A joint-stock company usually has a board of directors and management team responsible for the company's decision-making and operations."
Li Jianguo slapped his thigh and said, "This means shareholders won't participate in management. That's good."
He was already busy managing Lijiawan and had no time to manage the food factory.
Wenwen knew that Li Jianguo didn't have the energy to manage the food factory, and she didn't have the time either. "The board of directors and management can be made up of professionals to improve the company's management level."
Lu Zhao thought this was fine. He probably didn't have time to manage it. "This is fine. We don't have time to manage it either."
Seeing that everyone agreed, Wenwen said, "The shareholding system has another advantage. The transfer of shares allows investors to flexibly adjust their investment portfolios."
Wenwen saw that no one said anything. "During the operation, if any shareholder wants to withdraw, they can sell their shares."
She went on to say, “However, the shareholding system also has some disadvantages, such as the possibility that the interests of management may not align with those of shareholders, leading to agency problems.”
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