HPDBC Chapter 352 Boardroom Clash
Chapter 352 Boardroom Clash
February 20, 2000, 10:00 AM.
The first board meeting after the New Year is being held in the conference room of Xingchen Technology.
The long conference table was filled with people on both sides. Ling Yun sat at the head of the table, with Carly to his left and David to his right. Fiona sat in the back row, a notebook open in front of her and a short pencil in her hand.
Anderson sat at the other end of the long table, with Winston on his left and a representative from HP on his right. Dell sat by the window with a glass of water in front of him.
Dr. Leila and the French representative sat together, exchanged a few words in hushed tones, and then both looked at Ling Yun.
Ling Yun glanced at the clock on the wall; it was 10:03.
"Let's begin," he said.
Anderson cleared his throat. "Today's meeting will mainly discuss a proposal." He picked up a document from in front of him. "It's about establishing a strategy committee."
He handed the documents to the person next to him, passing them around one by one. When they reached Ling Yun, Ling Yun didn't take them. The documents remained on the table, untouched.
"The strategy committee is composed of shareholder representatives and has veto power over major investments," Anderson said, looking at Ling Yun. "It's mainly to strengthen corporate governance and protect shareholder interests."
Ling Yun didn't speak.
Anderson waited a few seconds, then asked, "Ling, what are your thoughts on this proposal?"
I disagree.
Anderson smiled. "Ling, you have to give me a reason."
"The reason is that this is a board meeting, not a shareholders' meeting. Major investments are decided by the board of directors, not by shareholder representatives. If you want to amend the company's articles of association, you need a two-thirds majority vote at the shareholders' meeting."
Anderson's smile faded. "We're not changing the bylaws. It's just a committee, an advisory body."
"Should a veto power be applied to consultative matters?"
Anderson didn't respond, but Winston spoke up, "Ling, do you know what the market is like right now? The Nasdaq has plummeted like this, and investors are very anxious. They need a signal that corporate governance is up to standard."
"If investors are anxious, will they send a representative to veto my investment? If they're anxious next year, will they send someone to veto my hiring? And the year after that, will they send someone to veto what I'll have for lunch?"
The HP representative coughed. "Mr. Ling, please don't get agitated. We're just having a discussion."
"I'm not agitated, I just disagree. I don't have time to put on this act with you."
Anderson pushed the file forward. "So, what's your suggestion?"
"No suggestions, maintain the status quo. I don't need an emperor emeritus to dictate things and affect decision-making and the speed of response to the market."
Anderson leaned back in his chair and tapped his fingers twice on the table. "Ling, you're putting us in a difficult position."
"You're having a tough time, but I'm not? StarCenter's performance is booming, losses are continuously decreasing, and in two more quarters, our cash flow will be positive. StarCenter's market share is constantly rising, and our new computer installations have already surpassed Microsoft's. You can't not see the achievements I've made, can you?"
Anderson kept his head down, his pen moving constantly. He was writing something in his notebook without looking up.
Dr. Lyra raised her hand. "May I say a few words?"
Ling Yun nodded.
"Our Abu Dhabi Investment Authority has invested in many companies. There are indeed precedents for setting up such a strategic committee. But that's usually reserved for companies that are exceptionally large, like those worth tens or hundreds of billions. Starry Sky now…"
She didn't finish her sentence, but she conveyed the meaning.
The French representative nodded in agreement, "That's our view too. At this stage, there's no need."
Anderson looked at the two of them. "You mean, you're against it?"
Dr. Leila nodded, and the French representative also nodded.
Anderson was silent for a few seconds, then looked at Dale.
Dell was looking down at his phone when he felt someone looking at him and looked up.
"Me?" He put down his phone. "I haven't decided yet."
"When will you have a decision?"
"Wait until you've finished discussing."
Anderson looked away and at Ling Yun. "Ling, vote."
Ling Yun nodded. "Then let's vote."
Fiona stood up, took a stack of printed ballots, and handed them out one by one. One ballot for each person, and one pencil for each person.
Anderson took the ticket, glanced at it, and placed it on the table.
"Let me make this clear first. Those who support this proposal advocate for the establishment of a strategic committee. Those who oppose it advocate for maintaining the status quo. Those who abstain simply abstain."
No one spoke.
Anderson picked up a pen and drew a checkmark on the ticket. He folded it up and placed it in the middle of the table.
Winston also drew a checkmark, folded it up, and placed it next to Anderson's.
The HP representative also ticked it off and placed it on.
The three tickets were stacked together.
Ling Yun picked up a pen and drew an X on the ticket. He folded it up and placed it in front of him.
Dr. Lyra crossed it out and let it pass.
The French representative crossed it out, so it was passed over.
The three tickets were stacked on Lingyun's side.
Fiona went over and collected the tickets. She went back to the back row and began counting them.
No one spoke in the meeting room. The only sounds were the hum of the air conditioner and Fiona flipping the votes.
Dale sat there, his tickets still untouched. He looked at the two piles of tickets, then at Ling Yun, then at Anderson.
Anderson looked at him.
Dell, which one do you choose?
Dale didn't answer. He folded his vote and placed it in the middle of the table. "I abstain."
Anderson's expression changed slightly. "Abstain?"
"Um."
Dell picked up his water glass and took a sip.
Fiona continued counting. She counted twice, then stood up.
"Mr. Ling, the results are in."
Ling Yun looked at her. "Announce it."
Fiona looked at the paper in her hand. "Goldman Sachs, Morgan Stanley, and HP, three votes in favor, totaling 33.12%."
"Lingyun, employee stock ownership platform, French National Investment Bank, and Abu Dhabi Investment Authority received four dissenting votes, totaling 35.68%."
"Dell abstained, and the remaining minority shareholders abstained, totaling 31.2%."
She paused, then said, "Since the number of votes in favor was less than half, the proposal did not pass."
The meeting room fell silent.
Anderson sat there, tapping his index finger lightly on the table.
Winston looked at the pile of votes without saying a word. The HP representative took off his glasses, wiped them, and put them back on.
Ling Yun stood up. "Is there anything else?"
No one answered.
"Then I have an announcement to make: the latest version of the Star System is about to be released. To ensure the normal operation of Star System, please don't call a board meeting for every little thing. I'm quite busy." Ling Yun looked at Anderson and waved his hand. "Then let's adjourn the meeting."
Ling Yun stood up, pushed open the door, and walked out.
The corridor was empty. He took a few steps and stopped. Fiona followed him out and stood beside him.
"President Ling."
"Um."
"What about Dell..."
"I know."
"Then why did he...?"
"Because he doesn't want to take sides; he's just a fence-sitter."
Fiona didn't ask any more questions.