Chapter 24 Chapter 24 "Fake Daoism" and the Financial System of Joint Stock Companies

In recent years, joint-stock enterprises have quietly emerged in our country.Although the time is short, it is extremely fast.There are countless joint-stock companies appearing everywhere, and more and more new shares are put into the market, attracting thousands of investors to enter the market to fight. "If you want to get rich, buy stocks" is no longer an empty phrase, but a reality, a choice worth trying for you and me. The reason why the joint-stock company is particularly prosperous is that it has the potential to attract shareholders and tap funds from all aspects of society.On this point, we will introduce in detail in the section "Blooming on the Tree".Stock market investment means fierce competition not only for shareholders, but also for companies that issue stocks.Competing for what?It is mainly to compete for shareholders, in other words, it is hoped that more people will buy the stocks issued by its own company.In order to achieve this goal, the joint-stock company will not hesitate to use any means (of course, it must be legal) to infiltrate the shareholders among the various joint-stock companies to infiltrate its own power to attract shareholders and make them buy the company's stocks.This kind of fierce competition, in "Thirty-Six Strategies", is called "false way to attack Guo".

"False way to defeat Guo" is the sixth strategy in the fourth set of melee strategies in "Thirty-Six Strategies". "Between the two great powers, the enemy is threatening to follow, and I use the power to pretend. I am trapped, and I don't believe what I say." It means that when dealing with a small country in the gap between hostile forces, you should find various excuses to infiltrate your troops.After controlling the opponent, launch a surprise attack.The inventor of this strategy was Jin Xiangong in the Spring and Autumn Period of our country. At that time, Guo State and Yu State were two small neighboring countries.Jin Xiangong had long had the ambition to annex them.However, he also considered, "If I attack Guo State, I have to go through Yu State. If Yu State sends troops to stop it, or even unite with Guo State to resist Jin, although our country is very strong, it is difficult to be sure of winning if we deal with two countries at the same time." , should think of a surefire strategy."

Xun Xi, a minister under Jin Xiangong, saw through his lord's mind, and offered him a plan: "Yu Jun is very greedy for money, you can give Yu Jun the fine horses and precious gems produced in our country, and ask him Borrow the road to attack Guo State." When Duke Xian of Jin heard this, he felt a little distressed: "This fine horse and precious jade are our national treasures, how can they be given away casually?" Xun Xi said: "The treasures given to Yu State are just from Jin Dynasty. Take them out of the country's inner treasury and temporarily store them in the outer treasury. As long as this is the case, these two treasures will still be ours sooner or later." Jin Xiangong was relieved.

Soon, Duke Xian of Jin sent Xun Xi to meet King Yu with BMW and Baoyu: "Guo State has repeatedly attacked our border towns, and our country wants to use your country to ask why Guo State invaded the border of Jin State." Seeing the generous gift, he immediately smiled and agreed, and also expressed that he would send troops to attack Guo State as the vanguard.Gong Zhilong, a doctor of Yu State, heard about it, and quickly dissuaded him: "Our Jiguo State is a neighbor who depends on each other. If Yu State is destroyed, isn't it cold?" Zhiqi couldn't bear to see the tragic scene of the country being ruined and his family was ruined, so he led his family members to flee to other countries for asylum.

As soon as Duke Xian of Jin saw that King Yu had been fooled, he sent generals Rick and Xun Xi to lead an army through Yu State to attack Guo State, and easily destroyed Guo State.The Jin army returned from victory and stationed in Yu State.Rick asked to stay in Yu State for a period of time under the pretext of rectifying his troops.Yu Jun was not on guard against this.He thought that although he had lost the ally of Guo State, he had the strong backing of Jin State, so he could rest easy from now on.Unexpectedly, after a few days of rest, the Jin army immediately launched a surprise attack on Yu State, and soon wiped out Yu State.Only then did Jun Yu remember Gong Zhiqi's advice back then, but it was too late to regret it.After the fall of the State of Yu, the famous horse and Baoyu returned to Duke Xian of Jin. Baoyu remained unchanged, but the horse's teeth grew longer.

When you are in a difficult situation, you can't trust others' words.Mr. Yu didn't understand this truth, and he regarded the enemy as a friend, and the country was ruined and his family was destroyed.This is not surprising.Duke Xian of Jin destroyed the state of Abuda in one fell swoop, and his strategic thinking is enough to inspire future generations, especially enough to inspire many joint-stock company operators today.The purpose of Duke Xiangong of Jin's "false way to attack Guo" is to control the small country in trouble and infiltrate his own power in advance.The purpose of joint-stock companies issuing stocks is to allow more people to buy them, and various methods must be adopted in advance to attract investors.Aren't there many similarities between the two?

The intensity of competition in the stock market is no less than that of battlefield factories. In order to attract more shareholders, a joint-stock company must be well-run and run smoothly.For company brokers, in order to make their company prosper, they must establish a whole set of healthy financial system, which is also an important symbol for stockholders to judge whether the company is in good condition. Some people say that the company's financial system is like the blood circulation system in the human body. The smooth and healthy circulation is one of the foundations for the company's prosperity.For a company limited by shares, the financial system is very important.Generally speaking, the financial system of a joint stock company mainly includes five aspects, namely, accounting books, dividends and bonus distribution, cost promotion, provident fund, and financial inspection.The head of a company must pay special attention to these aspects.

At the end of the year, the board of directors must submit to the regular meeting of shareholders the following accounting records: business report, balance sheet, property catalog, profit and loss book, and profit distribution or loss recovery plan.These forms are kept confidential to the outside world before they are submitted to the shareholders' regular meeting, in case someone uses these forms to carry out some illegal activities.The annual general meeting of shareholders of each joint-stock company has an important topic, which is to review and approve the various forms provided by the shareholders of the board of directors. item list, and pass a resolution.When passing various forms and resolutions, the creditors of the company may request or copy any part of the contents of the forms and resolutions, and the board of directors and shareholders' meeting shall not refuse the request of the company's creditors.

Throughout the year, each unit should express something, which is a matter of reason.In a joint stock company, the first consideration is the distribution of dividends or bonuses to the shareholders.The distribution of dividends or bonuses is generally clearly stipulated in the articles of association of each company, and various distribution plans must strictly follow these regulations.Except for special circumstances, most of them are based on the proportion of shares held by each shareholder, and the dividends received by the company's employees also have appropriate proportion regulations.

The establishment and operation of any company is not an easy task. The payment and use of money is the prerequisite for a company to use it freely. Without this prerequisite, the company may fail halfway.However, if you have money without good financial management, you can only get twice the result with half the effort, leading to the bankruptcy of the company.Therefore, the amortization of expenses is also an important aspect of the company's financial system.The amortization of expenses in the company's financial system generally consists of three aspects: the amortization of the company's establishment expenses, the amortization of the difference between the issuance of new shares and corporate bonds.These expenses have two obvious features: ① The amortization of expenses is fully included in the asset side of the balance sheet. ② These expenses are generally amortized evenly in every decision within 3 to 25 years after the company opens.

Where there is expenditure, there is accumulation. In a joint stock limited company, the company cuts off the tax paid, and the rest must be filled with 10% of the statutory common reserve fund.Of course, the special surplus reserve fund still needs to be decided by the general meeting of shareholders.The provident fund is equivalent to the profit retention of many enterprises in my country. This fund mainly includes: the proceeds from the issuance of stocks exceeding the par value, the profit from the increase in asset valuation deducting valuation depreciation in each business year, the premium income from disposal of assets, and the income from receiving Receive the cash price of the gift, etc.This asset is part of the fixed assets and should be included in the company's property according to the law. It is a securities and should be cashed into the account. Otherwise, the shareholders' congress has the right to intervene and put forward its own views on this.The public provident fund is the common property of the shareholders, just like the profit retained by the enterprise, and cannot be used arbitrarily in the name of individuals or in other ways.As a joint stock company, the use of this provident fund must have a certain scope of application.Generally speaking, it is mainly used to make up for the company's losses, or to convert into increased costs, such as issuing new shares. The company's finances are the company's blood system, and money is the blood in the blood circulation system. The flow of blood is restricted by the blood circulation system, so the blood circulation system has to be checked once a year.In our country, at the end of each year, the State Council requires party and government agencies at all levels to conduct major financial and tax inspections, and the same is true within joint stock companies.So, who can take up this task?In order to ensure the openness of the inspection, many limited companies hire courts and auditors to check to prevent various mistakes. The person selected to inspect the company's financial and property situation is entrusted by the company's owners, the shareholders, to exercise their rights.Operators of many companies regard this kind of inspection as "passing the threshold". The financial system is one of the symbols to measure the quality of a company.Only with a strict and flexible financial system can the company have vitality and win the trust of the majority of shareholders, and the company can succeed in its purpose of attracting shareholders.Otherwise, the fate of the company can be imagined. The first thing that a company that is in poor management due to bad financial system is the company reorganization.Corporate reorganization refers to the legal procedures in which a company files a request to the court for reorganization due to financial difficulties, temporary suspension or possible suspension of business.According to the analysis of a research institution specializing in securities trading in the United States, most of the companies in the United States that require reorganization every year are due to the deterioration of the company's financial situation and difficulties in production and operation due to the slow turnover of liquidity.If such a company does not submit an application for reorganization, in order to ensure the normal operation of the stock market, the relevant parties can also force the company to accept the reorganization and stop the company's stock trading.Not long ago, a similar incident happened in Shenzhen, my country. Since March 1991, Shenzhen Municipal Bureau of Industry and Commerce has successively received audit reports and complaints about Yuanye Company’s untruthful initial capital investment, discrepancies in profit figures, unauthorized changes in major equity interests, and unreasonable capital flows.According to the investigation, relevant parties finally found that there were major problems in the company's financial system. First of all, Hong Kong Runtao Industrial Co., Ltd., the so-called major shareholder of Yuanye Company, illegally obtained the shareholder status of a promoter of Yuanye Company without government approval.The company not only refused to pay a penny of the share capital, but also colluded with an accounting firm in Shenzhen to conduct an untrue capital verification by means of false value-added and appraised value-added, and stole the huge value-added fixed assets of Yuanye Company. holding position.Under such circumstances, Shenzhen Garment Industry Co., Ltd., the largest shareholder of the Chinese partner, not only advanced illegal share capital for others, but also arbitrarily gave up the share capital without government approval. Secondly, Hong Kong Runtao Company took advantage of its illegally stolen controlling position to manipulate Yuanye Company, ignored my country's foreign exchange management regulations, and remitted Yuanye Company's funds overseas under the guise of paying overseas purchases, construction funds, and overseas investment, and used it to hold back overseas sales. The foreign exchange funds of Yuanye Company, equivalent to more than 100 million yuan, were transferred to Hong Kong Runtao Company and its overseas affiliates by means of payment for goods and other methods.Not only that, while Yuanye Company let other companies and individuals illegally occupy a large amount of funds for a long time, it also has overdue bank loans equivalent to more than 300 million yuan. Thirdly, Yuanye Company, under the control of Hong Kong Runtao Company, did not follow the statutory procedures, and abnormally and frequently changed the general manager and deputy general manager and the heads of relevant departments, resulting in the financial departments of the parent company and related subsidiaries being controlled by Hong Kong. The relatives of the main person in charge of Runtao Company controlled it. Finally, Yuanye Company has three joint ventures, all of which have foreign shareholders holding controlling positions, but these foreign companies have not actually invested or invested insufficiently as required. Recently, relevant parties in Shenzhen have made a decision to suspend the trading of Yuanye Company's stock, and the issue of Yuanye Company will be thoroughly investigated and dealt with. The suspension of trading in Yuanye Company's stock is enough to arouse people's thinking.For stock investors, they must care about the operating conditions and financial conditions of listed companies in order to effectively exercise the rights of shareholders and protect their own interests.For the operators of joint-stock companies, the company's financial system is very important to occupy a place in the life-and-death business war.If we repeat the mistakes of Yuanye Company, not only will it become empty talk to seek development through "fake ways", but the survival of the company will also become a problem.