584 Public Corporations

However, Pimont was troubled by this: the Portuguese-Australian company, which initially only had him and the other two major shareholders, was obviously not strong enough, and to put it bluntly, the capital of the original company was not enough to cover all the goods shipped by the Australians.

Because at the beginning, there were only three major shareholders in this company, Pimont Degus and Duchess Margaret, the share ratio was 622, and the total investment of the company was only 50,000 taels of silver.

This is indeed not much compared to the goods of Australians, but this is already the largest amount of money that several major shareholders can come up with at present.

Obviously, this mere fifty thousand taels of silver could not monopolize the sale of goods by Australians, but Pimont was very reluctant to let others get involved in his business.

What to do? Administrative monopolies are not okay because Australians are firmly against it.

Pimont, one of the signatories of the Macao Consensus, knows that what he is doing must not violate the free trade principle of "open door and equal interests" advocated by Australians, and he knows that this is one of the bottom lines for Australians to distinguish friend from foe.

However, the matter was quickly resolved, because the three major shareholders of the "Portuguese-Macao Company" later accepted a major proposal put forward by Sun Lao, and Pimont immediately carried out a fundamental reorganization and expansion of the company in accordance with Sun Lao's proposal and with the help of Li Junming.

According to Sun Lao's suggestion, Pimont raised the share capital of the "Portuguese-Macao Company" from the legal residents of Dili City with the tax credit of the Governor's Palace of Dili as collateral, that is, Pimont allowed the company to raise funds and expand its capacity in this way, which greatly improved its own financial strength.

Sun Lao strongly suggested that Pimont learn from the Dutch's East India Company and transform this closed oligopoly unlimited liability company with only three shareholders into a "public company" with a limited liability system with many small shareholders.

However, before that, Sun Lao had clearly informed Pimont that the advantages and disadvantages of this approach were obvious.

The advantage is that it can gather a large amount of funds from the private sector, which can rapidly expand the scale of the company and improve the economic strength of the company.

However, the downside is obvious – you may lose the right to act arbitrarily within the company, because you have to face the challenge of many minority shareholders, and if these small shareholders join forces, you may lose actual control of the company if you do not have absolute control.

Of course, you can get the big shareholders and some small shareholders to support you and keep control of the company, but only if you act wisely enough to be trusted by the big and small shareholders.

Sun Lao also philosophically said to Pimont that authoritarian power may lead you to success, but it is more likely to lead you to collapse.

Because your wisdom and ability alone are limited, it is a common occurrence for arbitrariness to lead to collapse, and I have to say that this is a normal situation.

For this reason, Sun Lao solemnly and pointedly told Pimont, how do you make a trade-off in the face of such a situation? Essentially, it's tied to your values.

That's right, whether it's a career or a business, like being a person, there are values as the background, in a word, you have to make a careful choice between benefiting everyone and arbitrarily decisive.

But one thing is certain, countless facts have proved that if your business or business wants to get everyone's heartfelt support and support, and let your business continue for a long time, then you should take the road of benefiting everyone.

In a word, expanding the "mass base" of your business and business is the fundamental way to achieve long-term peace and stability and maximize profits.

Of course, if you don't have the will to do big business and big business, then I didn't say the above words, Sun Lao finally added......

Obviously, Pimont, who had experienced the baptism of rebellion, was deeply touched by Sun Lao's proposal.

Pimont proved to be an ambitious and intelligent man, as evidenced by his old-world life saga.

Sure enough, after chewing on the new term "mass base" for several days, Pimont immediately ran to convince Degus, the only one who still had doubts, and then he decisively divided the shares of the company into 100,000 shares, announced them to the citizens of Dili in the form of a public prospectus, and sold them to the residents of Dili City at a price of two taels of silver per share.

To Pimont's surprise, the company's 100,000 shares were sold out in just one week! As a result, the Portuguese-Macao Trading Company Limited was surprisingly able to raise 200,000 taels of silver.

In the end, after a complicated shareholding operation, the three major shareholders, Pimont, Degus and Duchess Margaret, jointly invested in the control of 35% of the shares, of which Pimont owned 15%, and the other two each controlled 10%, these three became the largest shareholders of the company in the first place, and at the same time, Pimont's previous prestige also played a great role, and he won the support of all large, medium and small shareholders to serve as the chairman of the board of directors of the company.

Pimont also announced that today's "Portuguese-Macao company" will be an open company, with equity transfers allowed within shareholders.

It was also announced that in the future, the company's total share capital will continue to expand according to the scale of the business, and it is expected that within three to five years, the company's total assets will double to 400,000 taels of silver.

So in any case, with the scale of these 200,000 taels of silver, Pimont's business dealings with the Australians were much wider.

The added benefit of this move is that at least a third of the citizens of Dili are now staunch supporters of the Governor of Pimont, as these are the shareholders of the "Portuguese-Macao Company", large and small, and if you count the immediate family members of these shareholders, it can be said that the whole city is a staunch supporter of Pimont.

Today, the shareholders of the "Portuguese and Macao Company" come from all walks of life, from the officers and personal entourage of the Governor-General, to the mayor and members of the city council, from civil servants at all levels to ordinary soldiers, and of course, the merchants, street vendors, and even the chiefs of the church and some of the surrounding tribes in Dili.

Since the shareholders of the "Portuguese and Macao Company" range from high-ranking officials to ordinary citizens, it has indeed produced a broad "mass base", and even those who work as porters for Australians have small shareholders of the company......

Feeling a great responsibility, Pimont is now becoming cautious even in municipal law enforcement, and he is always open to the opinions of all sides, and he is willing to communicate directly with the citizens on the street, and he also actively promotes the company's business to these citizens and shareholders.

For example, Pimont encouraged the citizens to organize themselves into the jungle to deal with the tribal natives, and to obtain timber, minerals, and various local products......

The Governor also promised that if the company could bring coal, timber and all kinds of ores to the company, the company could even provide all kinds of help, including timely funding for the supplies, and that after the goods were handed over to the company, the company could resell them to the Australians, so that everyone would have money to make money together.

Because of this, Pimont's prestige in the city of Dili is now in full swing.

For this suggestion given to Pimont, Li Junming, Gu Captain Zhu Beiguo, Xu Zhi and others who had participated in the discussion in advance also thought that Pimont might not give up his arbitrary power, because it would make him have to take care of and listen to the opinions of the minority shareholders.

Because in the final analysis, this is a kind of decentralization, which is a bit like the officials of some countries in the old world, who had to be patient with the large number of ordinary people who had votes in their hands, and had to or at least act cautiously in that way, and did not dare to act too arbitrarily and play with pleasure......