Post by
ivanyee1948 on Sep 22, 2010 12:45pm
GBK's 25 % equity = 25 % Profits.
If you form a partnership co with your friend 25 % you + 75 % your friend. He will have 3 directors + you will have 1 director basically. Management will be dictated by the majority 75 % friend, not you because legally he owns 75 % but in terms of policy, major expenditures, capital or big decisions, a special meeting of directors has to be called to propose, discuss + deliberate such matters + voted on. You the 25 % owner, director can agree or disagree + request that you disagree + that the minutes of the meeting record your disagreement + your reasons for objections but despite your disagreement as a minority owner your 75 % majority friend will still RULE 3 votes against 1 vote. In terms of salaries, compensation, bonuses etc a special meeting of directors would vote on such issues. Could it be that GBK + JILIN JIEN directors are at loggerheads over such issues or other JIEN CANADA CZZ mine development issues, hence the JJ directors Power Play to purport to issue nore VOTING shs to circumvent GBK's Directors conflicts but for sure JJ can not take away GBK's 25 % equity / profits ownership in CZZ Jien Canada Mine. Of course, JJ can buy out GBK's 25 % ownership + but they would have to PAY UP . However I have a feeling that JJ's directors may have acted in ANGER + without the approval + knowledge of JJ's Top Bosses in SHANGHAI. These things happen very often in business partnerships between Canadians + American business executives all over the world + in fanily friend business partnerships. It's all about Money, Egos, Power + Personalities + clash of cultures. Wait for UPDATES coming in hrs?