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451 Planning for the Lu Corporation Board Meeting - Part 1

Friday

CEO Lu, was in his office at Lu Corporation fuming with the advice that the head of the legal department had just given him.How in the world could someone get a hold of half of the on-market shares in Lu Corporation in such a short time.

The current shareholder register indicated a company called WFT International which from his inquiries no on had heard of within three weeks had purchased those shares.Another two unknown companies had purchased between them another five percent.From what he could determine that was all of the small shareholdings in LU Corporation.Worryingly the holders of the remaining shares traded on market were not returning his calls.Something was happening, but he had no idea

As WFT held twenty percent the company, the company charter gave it the ability to demand a emergency shareholder meeting, where every shareholder of two or more percent had the right to attend.They had done that.This meant it would be a meeting involving him, representing the forty-three percent controlled by the Lu family, the two percent directly controlled by Yang Lin\'s parents, the fifteen percent controlled by the Yang Group, the new shareholders that controlled twenty-five percent, that left fifteen percent that he had no idea what was happening.

He had informed the head of the legal department to send out the requisite notices under the company charter, but asked him to remain in his office for a few minutes.The meeting had to be held within one week of the demand, and given it was received yesterday, that meant the meeting had to be held by Wednesday.Who had the money or the guts to try and pull something against him?

That meant he had to call the prison authorities to get in to see that brat of his today.The will of his grandparents said the shares remained under his control until Lu Jinhu married and had a child, but he had a say in what he did with the shares voting rights.Once Yang Lin gave birth those shares fully became his, but with the requirement that the shares could not go out of the control of the family.

He made a call to the prison authorities to explain the situation, but given he had been in the previous day they were refusing to allow him to return before Sunday.This angered him significantly, however, taking what Lu Jinhu had said on last Sunday, and took a couple of deep breaths.

He then said "Look, how about I have you speak to the head of Lu Corporation\'s legal department.They can explain the company charter, the shareholder rights, and the will my grandparents.That will, while giving me as CEO the power to vote the shares, requires me to consult with him before I do so.This is not a breach of his sentence, as he is not a director or has anything to do with the running of the company, he has rights as a shareholder."

"I need to explain to him the situation and give him some time before Sunday night, so he can tell me what he wants to do.The other thing is that I need to have the ability to call him on Wednesday when we have the meeting if something new comes up that I cannot anticipate to allow him to have his say.I will now hand you to the head of my legal department."

With that CEO Lu handed over his phone to the head of the legal department, who started in his presence to explain the Charter of Lu Corporation and his grandparent\'s will.

Twenty minutes later the head of the legal department finally finished the call with the prison authorities, and turned to CEO Lu "Sir, finally I had the prison authorities see sense, however there are some conditions, there has to be someone from the prison authorities and myself there with you and you can only be there long enough to speak to your son to get his instructions in relation to what to do.You can see him at 2pm this afternoon.As to next Wednesday, they will allow you a call, however the only way that they will facilitate it is if you call them and they will patch the call through and be listening on the other end."

As soon as the words came out CEO Lu was fuming.That made it hard to discuss the situation, but he took a couple of deep breaths and spoke "Well if that is what I have to do, I guess I have no choice.However, can you get the requisite notices out to the relevant shareholders for the meeting on Wednesday."