Chapter 199 Proposal for the Reform of Joint-Stock Commercial Banks

There are a total of five firms that have obtained these two electronic product technologies. This is of course to promote their competition.

It is disadvantageous for the market to have only one producer. For large trading houses, Rollo can use his authority to manage and limit their behavior.

But there are too many small and medium-sized businesses, and people’s hearts are different.

In fact, Luo Luo himself has relevant policies, but because he has not returned to the Earth Source Continent, he has not yet implemented them. After all, although the survey data is accurate, it is far less reassuring than seeing it with his own eyes.

Policy implementation needs to be very realistic.

Rollo still needs to carefully consider and discuss before making a decision. After all, every decision he makes may affect the future of the Earth Source Continent.

According to the urgency of the matter, balancing the economic status of various trading houses in God's Domain is by far the most important.

So now they are only implementing the method temporarily, and the technology they get is also very low-end. It will not have a major impact on life, but it will bring convenience to people.

This may seem like a contradiction, but it is not.

Saying that it will not have a major impact on life is because if the machines they get are not produced, it will not affect the overall situation. It will just make people feel inconvenient, but if used, it will improve some efficiency. This is a hidden advantage. Requires long fermentation.

But there will be no such serious consequences until Luo Luo comes back. This is the conclusion reached after Cai Mengmeng's strict calculations.

Some trading houses will get three mechanical technologies, some will get two, and they are all different.

Lin Pu was of course ecstatic after receiving the technology authorization. Being able to obtain the technology means that his business would not go bankrupt at least for the time being.

Yes, the word bankruptcy was also popularized by Rollo. It is a reasonable means for commercial companies to protect the interests of operators when their profits are lower than their costs.

Of course, his bankruptcy was also accompanied by his credit rating. These credit ratings were a rating system specially formulated by Rollo for everyone in Diyuan Continent.

If a business owner files for bankruptcy, their credit rating will also be reduced.

Although bankruptcy protects their legitimate rights and interests, it will be very difficult for them to conduct their next business operations. Most commercial banks will not cooperate with these merchants with low credit values ​​because it is not safe. Not decent either.

The bankruptcy of your business bank means two things. One: you are not honest enough and deliberately harm your superior sellers and your lower-level suppliers. Or the second one: your business level is not enough and you have no choice but to go bankrupt.

And no matter which of these two reasons it is, other businesses will stay away from it.

This also restricts the principals of commercial banks from engaging in intentional bankruptcies to avoid punishment.

The Earth Source Continent is not Blue Star, and these systems are only temporary, which means they may be modified or deleted later.

After all, the cultures of the two are still different, and Rollo is not prepared to copy the laws and regulations of the Blue Star era to the Earth Source Continent.

This is not feasible. Luo Luo has confirmed this before. It can be learned from, but cannot be copied. It must be in line with the actual situation of the Diyuan Continent in order to be able to prescribe the right medicine.

Similar to this is the ‘Reform Proposal for Joint-stock Commercial Banks’.

Transform major commercial banks into more modern ones that are more suitable for the industrial era.

Of course, the requirements for management rights in this proposal are more stringent.

Management rights are the product of the division of powers and responsibilities when a commercial bank establishes a joint-stock commercial bank. It not only represents rights, but also represents responsibilities.

This right is usually occupied by the major shareholders, that is, the promoters of the business firm, and is almost unchangeable.

After all, major shareholders are often the soul of a business firm, and they possess unique resources.

But it is possible that other people’s help will be needed to transfer the shares.

But as for the control rights, the proposal stipulates that these control rights are controlled by the major shareholders from beginning to end. This is because strength speaks for itself on the Earth Source Continent. Of course, under such an order and civilization, it cannot be done. Something special.

But those in power will never formulate a law that allows the lower levels to restrain the higher levels. Luo Luo also does not want this. After all, the Luo family is also a beneficiary.

And he is the most powerful person among the three major speakers.

Therefore, the Luo family or the Technological Sect often occupy the majority when conducting business activities.

The second is the transfer of equity.

Major shareholders must ensure that they own 60% of the shares of the company, and the remaining 40% can be transferred or publicly auctioned to others.

But this is not without problems. If according to the previous regulations, the rights are seized by the major shareholders, and other people have no interference and can only use their own resources to convert interests, then it will appear that the major shareholders may exist. The act of deceiving other shareholders.

Of course, this kind of behavior will not be protected by the upper management, so the ‘Equity and Equity Law’ followed.

This bill is intended to protect the rights and interests of other shareholders who are not major shareholders. Major shareholders must clearly post the operation status of the business and publish it every three months. Not only participating shareholders can view it, but even others can view it.

Once the shareholders have objections to the operating methods and operating costs, they can submit an appeal to the mainland court.

Of course this requires evidence.

Although the major shareholder has the control over the entire business, other shareholders also have the right to supervise. They have the right to supervise the major shareholder's business behavior throughout the process. They will not care about some small problems, but once a big problem occurs, they can immediately protect themselves according to this law.

Of course, this has not happened yet, because the court has not been established yet. It is only under the leadership of Luo Luo's subjects to learn relevant knowledge. After all, these things are the first time in the Earth Source Continent and there is no precedent.

At the critical moment, we still have to rely on Luo Luo to help.

At the same time, the partners in business are basically people who know each other, and no one will jointly operate a business with unfamiliar people.

In this regard, the people of the Earth Source Continent are still relatively conservative.

This is particularly serious in the establishment of small and medium-sized businesses.

But in large businesses, they are more open. After all, there are only a few upper-class families in civilization. Everyone will see each other and no one will do such a thing.

It is difficult to say about those small and medium-sized families. Sometimes when a small family declines, it is very likely that it will infringe upon the legitimate interests of others and transfer assets. At that time, even if its own interests are guaranteed according to the court's judgment, those used and consumed materials cannot be recovered.