Liu Mingyu's eyes lit up.
"In the next five years," Zhao Chen said, "For every year of working for Henglong, 20% of the loan will be forgiven."
He paused:
"At the end of five years, the loan will be cleared and the shares will belong to you."
Meeting Room was quiet for a few seconds.
Liu Mingyu's Adam's apple rolled.
Chen Qiming raised his head, with something complicated in his eyes - surprise, gratitude, and a little bit of disbelief.
Song Zhongping leaned on the sofa, looked at Zhao Chen, and suddenly smiled:
"Chairman Zhao, you are going to tie us to Henglong for five years."
Zhao Chen looked at him:
"Don't want to?"
"Yes." Song Zhongping smiled wider, "I'm so willing."
Liu Mingyu also responded and thanked her profusely:
"Chairman Zhao, this... this is too..."
He didn't finish what he said, but everyone understood what he meant.
The 2 million shares purchased with a loan were originally due to be repaid.
No need to pay it back now.
As long as you work at Henglong for five years, those 2 million shares will be yours.
White.
Chen Qiming opened his mouth, but in the end he could only hold back one sentence:
"Chairman Zhao, I... I will definitely do it well."
Zhao Chen nodded and turned to Zhang Qingxue:
"Aunt Zhang, from a legal perspective, are there any risks?"
Zhang Qingxue pushed up his glasses and entered the professional state:
"This arrangement is essentially a variation of 'performance gambling' – using years of service as a condition for debt forgiveness.
There is no legal problem, but there are a few details that need to be clarified."
She clasped her fingers:
"First, the agreement must clarify the nature of 'debt forgiveness', whether it is to be waived year by year or in one go after the expiration of the term.
I suggest exempting it year by year so that there is a clear performance evaluation node every year."
"Second, if you leave your job midway, how to deal with the unforgiven debts.
It is necessary to agree on a calculation formula, such as converting the repayment ratio based on the service years."
"Third, tax issues. Debt forgiveness may be deemed as 'personal income' and requires personal income tax.
But this can be specified in the agreement, with the company withholding the payment, or the individual reporting it themselves."
She looked at Zhao Chen:
"If these details are clearly written, the agreement is compliant."
Zhao Chen nodded:
"Then let's do it. Aunt Zhang drafts it and sends it to them for confirmation before tomorrow."
Zhang Qingxue nodded. "Understood."
Liu Mingyu, Chen Qiming, and Song Zhongping looked at each other.
Five years.
It's not long, it's not long, it's not short, it's short.
But in the past five years, they have been tied to Henglong.
When one is prosperous, both are prosperous; when one is lost, both are harmed.
"Chairman Zhao," Song Zhongping said, his voice much more solemn than before,
"Don't worry, we will not let you down in these five years."
Zhao Chen looked at him and nodded.
"Secretary Liu," he said, "The new supplementary agreement will be announced after it is prepared."
He paused:
"Let the market know that Henglong's core executives have been locked in with the company for five years."
Liu Mingyu's eyes lit up:
"I understand. When this news is sent out, the stock investors..."
"I'm glad to hear it." Zhao Chen said.
Everyone laughed.
Yes, this is what stock investors like to hear most.
What does it mean for executives and companies to be locked in for five years?
It means stability.
It means confidence.
This means that these people will not easily cash out and run away.
For Henglong, who has just experienced a Short Squeeze war, this news is more convincing than any public relations release.
After the meeting, Liu Mingyu, Chen Qiming, and Song Zhongping left first.
Zhao Chen was in no hurry to leave.
He leaned back in the chair and tapped his fingers on the armrest, as if combing something.
Chen Xi saw this and put down the document in his hand:
"Zhao Zong, is there anything else?"
Zhao Chen nodded:
"Friday's Special Shareholders Meeting, how are the preparations going?"
Chen Xi immediately switches to working status:
"The notice has been sent out. It will be at nine o'clock in the morning on June 23, and the location will be the banquet hall on the third floor of Marriott Hotel.
The registration confirmation work of Independent Shareholder is in progress, and the current feedback is good."
Zhang Qingxue added:
"I have submitted the application materials of Whitewash Waiver to Stock Exchange, and there was no problem in the preliminary review.
Friday What needs to be voted on at the meeting are two issues-Whitewash Waiver and Board of Directors re-election."
Zhao Chen looked at her:
"Is there any problem? The term of this term of directors has not yet expired. Can they be re-elected?"
Zhang Qingxue pushed up his glasses:
"Under normal circumstances, directors whose term has not expired are indeed not suitable for re-election.
However, there are exceptions in <Company Law> and Company Charter - 'Due to major changes in the company Equity Structure, upon the proposal of shareholders holding more than ten percent of Voting Rights, Board of Directors can be re-elected in advance'."
She paused:
"You now hold more than 35% of the shares, which fully meets this condition.
Moreover, once Whitewash Waiver is passed, you will become absolutely Controlling Shareholder. The original Board of Directors structure is no longer suitable for the new equity structure.
It is reasonable and legal to change the election in advance."
Zhao Chen nodded:
"What about the personnel arrangements? What is your proposed list?"
Zhang Qingxue Open another page:
"My preliminary plan is:
You appoint Chairman, Ms. Su joins Board of Directors as non-executive director, Song Zhongping remains as executive director, and two more Independent Director--Sun Zhengping and Wu Hongyuan can stay.
In addition, I suggest adding a Independent Director with a financial background, and the candidate is being identified."
She paused:
"The seat Lin Wanqing is naturally removed from office. She has been dismissed Finance Director, and her status as director has lost her basis for holding office."
Zhao Chen listened and did not express his position immediately.
He was silent for a few seconds and suddenly asked:
"Shen Jue, have you considered it?"
Zhang Qingxue was stunned for a moment.
"Shen Jue?" She pushed up her glasses, "She... wants to enter Board of Directors?"
"In the meeting just now, she said she would retain 30 million shares."
Zhao Chen said, "More than 5% of shareholders are eligible to nominate directors."
Zhang Qingxue's expression froze slightly.
She really didn't consider this.
In the closed-door meeting just now, Shen Jue said that in an understatement--
"I will keep the other 30 million shares and become a shareholder of Henglong."
Zhao Chen said, "More than 5% of shareholders are eligible to nominate directors."
She thought it was just a statement.
But Zhao Chen heard it.
That is a declaration to enter Board of Directors.
"So..." Zhang Qingxue quickly adjusted his thinking,
"If Shen Jue enters Board of Directors, then the number of people in Board of Directors needs to be recalculated."
She clasped her fingers:
"You, Miss Su, Song Zhongping, Shen Jue, these are the executive/non-executive directors of Xiwei. Together with the three Independent Director, there are seven in total.
Including Liu Mingyu, the director who also serves as the secretary to the board of directors, there are eight people in total. Should Liu Mingyu no longer serve as a director and secretary to the board of directors?"
She paused:
"Otherwise the eight digits are an even number. In case of a tie in the vote..."
Zhao Chen nodded:
"Liu Mingyu continues to serve as director and secretary to the board of directors, so we need to add another person."
Zhang Qingxue looked at him:
"You can let Ms. Shen join Board of Directors. She holds 5% of the shares and is fully qualified."
Zhao Chen shook his head:
"Zhiyi is inappropriate."
He paused:
"She is still a student. And her identity...
Too sensitive. Now let her enter Board of Directors, what will the media write?"
Zhang Qingxue was silent for two seconds, then nodded:
"You are right. What about Miss Su? She was already on the nomination list."