Michaela was silent for a moment. She knew that what Charlie said was right.
At this time, she should indeed be tougher and set up the authority of the family head. Only one person against the entire board of directors, which made her more or less like a mane and did not know exactly where to start.
Charlie spoke at this time “I have the impression that in most groups, shares and voting rights correspond in equal proportions. If a person holds 10% of the shares, he or she has 10% of the voting rights. If a person holds more than 51% of the shares, the voting rights are also more than 51%. So theoretically, he or she is the absolute controlling majority shareholder, right?”
Michaela said, “That’s right Mr. Wade, that’s right.”
Charlie added “But for many large groups, because of the many businesses, many shareholders and the public offering of shares, the equity dilution is very strong. In many large groups, the single largest shareholder holding shares, maybe sometimes only twenty to thirty percent, right?”
“Yes.” Michaela said, “The vast majority of listed companies are like this, take Apple, which has a market capitalization of more than two trillion dollars, the largest shareholder, Pioneer Group, holds only about seven percent of the shares.”
Charlie said, “So in this case, it is necessary to implement the system of AB shares. Take away the voting rights of other shareholders without depriving them of their shares.”
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