Is Wu Changjiang responsible for the equity dispute of NVC Lighting?

Summary. The three of them are inconsistent in many aspects such as business philosophy, management, strategy, company development, etc., and there are more and more differences, and the contradictions are getting bigger and bigger, until 2005, Du Gang and Hu Yonghong united, and you can see that their equity is more than Wu Changjiang's; So they relied on the equity in their hands to have more equity than Wu Changjiang, so they let Wu Changjiang leave the company.

In the first NVC lighting control battle, whether Wu Changjiang's goal is contradictory to the maximization of shareholder wealth.

In the first NVC lighting control battle, whether Wu Changjiang's goal is contradictory to the maximization of shareholder wealth.

Hello dear, glad to answer for you. There is a certain contradiction.

The founder of NVC Lighting is Wu Changjiang, he started his business in 1998, when he found two partners, one is Du Gang, the other is Hu Yonghong of Luma Zhou, he invested 450,000 in Youliang, Du Gang and Hu Yonghong invested 10,000, this is the initial equity distribution chart, Wu Changjiang accounted for 45% of the shares, Du Gang and Hu Yonghong each accounted for shares.

The three of them are inconsistent in many aspects of business philosophy, management, strategy, company development, etc., and there are more and more differences, and the contradictions are getting bigger and bigger, until 2005, Du Gang and Hu Yonghong united, and when they joined forces, you can see that their shares and scumbags are more than Wu Changjiang's orders; So they relied on the equity in their hands to have more equity than Wu Changjiang, so they let Wu Changjiang leave the company.

Hello dear dear, I am glad to answer for you: The answer is: In the NVC lighting case, > 45%, 45% have a veto power, forming a restriction; At the same time, due to the small proportion of 45% of the founding major shareholders, the founding major shareholders gradually lost control after multiple rounds of financing, but they did not think so.

A similar game-based equity structure of 18% + 18% + 29% (option pool and investors) + 35% is usually not favored. Once 18% + 18% > 35%, this design is very far-sighted, and 35% has a veto power to form a checks and balances; As long as the investor accounts for the above, the investor unites 18% of any party, that is, it has a veto power to form a constraint; When the company didn't make money at the beginning, everyone seemed to care, but the company slowly became bigger, the cake was bigger, people's hearts changed, and many things were different.

What did it look like?

Wu Changjiang has always had some contradictions with the company's shareholder Wang Donglei due to his business philosophy and personal domineering president, and finally became more and more intense, Wang Donglei told Wu Changjiang about gambling and debt collection recordings, and also told employees by email that Wu Changjiang was suspected of privately authorizing the company's brand and suspected of benefit transfer, embezzlement, and fraud of the company's funds, etc., and finally removed Wu Changjiang from his position through the board of directors, Wu Changjiang expressed dissatisfaction with this, and was unwilling to hand over the official seal and business license, and the two sides made a big move. In the end, Wu Changjiang was investigated and criminally detained on suspicion of misappropriation of funds and embezzlement.

What verdict did Wu Changjiang make in the end?

1. Wu Changjiang was sentenced to seven years in prison for the crime of misappropriation of funds, five years and six months in prison for the crime of embezzlement, with a total sentence of 12 years and six months in prison, and confiscation of 500,000 yuan of property, and finally decided to enforce the sentence of 10 years imprisonment and confiscation of 500,000 yuan.

2. Wu Changjiang returned RMB 10,000 yuan to the victim unit NVC Lighting (China) ****; Refund 3.7 million yuan to the victim unit, Chongqing NVC Lighting.

What do I think about this?

First of all, I think Wu Changjiang has a problem with his personal style, first of all, in the early stage of Wu Changjiang's entrepreneurship, he found two high school classmates as shareholders, but due to the business philosophy of disagreement, Wu Changjiang was forced to go out, not long after, Wu Changjiang was promoted back to the company by the dealer, and one of the shareholders Yan Yan has a different view on the employment and business philosophy, due to Wu Changjiang's arbitrariness, the last two tore their faces. But Wu Changjiang finally received favor from Wang Donglei, Wang Donglei finally kept Wu Changjiang's position, but in the end he had a conflict with Wang Donglei, Wu Changjiang did not pay attention to the resolution of the board of directors, acquired enterprises, and revoked the veteran to cut off the prelude and other behaviors angered Wang Donglei, and finally made a big deal with Wang Donglei. Through the capital contest between the two, Wu Changjiang was finally detained and sentenced, from Wu Changjiang's various experiences, I think Wu Changjiang's personal style is problematic, he is not good at listening to the opinions of others, and he is arbitrary, which led to his current end, so it is also an inevitable result to come to this point.

The Huizhou Intermediate People's Court made a judgment after the retrial of the case of Wu Changjiang, the founder of NVC Lighting, that the defendant Wu Changjiang was guilty of misappropriation of funds and embezzlement, and decided to enforce a fixed-term imprisonment of 10 years.

After more than six years of detention, Wu Changjiang, the founder of NVC Lighting, was sentenced to ten years in prison for embezzlement of funds and embezzlement. Wu Changjiang was mainly guilty of misappropriation of funds and embezzlement.

He has already committed a number of business crimes, including misappropriation of funds, which is why he was sentenced to a prison sentence and a fine.

The misappropriation of the company's assets with the help of his position constituted an illegal and criminal act, so he was arrested, and the company's money could not be used at will.

Because Wu Changjiang used his position to embezzle the company's funds to occupy his position, it is already illegal.

Because the founder Wu Changjiang committed the crime of misappropriation of assets and embezzlement, he was sentenced to 10 years in prison.

He should have used his own resources, and then did some illegal things, which is why he was sentenced for so many years, and he himself is more money-loving, so this kind of thing happened.

Wu Changjiang's three misjudgments: 1. Too much equity allocation to partners in the early stage did not set up a good exit mechanism; 2. Deliver the initiative to investors, and don't forget that "Ziling or bending capital is always profit-seeking"; 3. Don't underestimate the ambitions of listed companies. Reflected knowledge points:

1.In the early stage of startups, the equity must not be too dispersed; 2.While formulating the partner equity system, it is necessary to formulate an exit mechanism; 3.

Don't easily hand over the initiative to investors, don't underestimate the risk of introducing capital, and take precautions; 4.We must establish a sense of responsibility for finance and legal affairs, and do not touch the bottom line of finance;