Analysis On Corporate Control Defense By Vanke Founder Manager

With the rapid development enterprises,a lot of enterprises start to transfer their business into a modern enterprise,the founder of the company's shareholding ratio starting to decrease as a result of promoting the shareholding reform.However,some financial institutions are trying to get control of those valuable companies by using all kind of means after dispersing equity structure.Therefore,the control of the company is seriously threatened.The biggest issue in modern enterprise transformation is how to secure the founder's control of the company.The selected case in this article is The fight over control of Vanke.Vanke's excellent corporate resources and its highly dispersed equity structure had triggered the battle between the founder manager and its major shareholders.In this article,the social capital used by Wang Shi will be analyzed from his perspective,the defensive action taken by Wang Shi will also be analyzed to interpret this battle.Moreover,this paper will explore the reason of this battle between the founder and major shareholders,how the manager secure his control over the company,and the role of social capital in this fight.The research show that the main reason behind this fight is conflict of interest.Because Vanke equity structure is highly dispersed,investors are able to buy the share in secondary market until they have enough share over control of the firm.Even though the founder have disadvantages,they can still fully use their social capital to fight over control of company.In this case,founder's defensive measures were successful by using their own corporate social capital.