The Case Study On The Control Struggle Of F Company

With the development of China's small and medium-sized private enterprises,their corporate governance issues are getting more and more attention.In corporate governance,there is a growing problem of founding shareholders and outside investors vying for control of a company.The founding shareholders are obsessed with the control of the company,while the strategic investors attach importance to the corporate governance actively.The increasing conflicts make struggles for control in the capital markets frequently.The competition for control right has a great influence on the development of enterprises.Therefore,it is of urgent and practical significance to analyze the competition for control rights of small and medium-sized enterprises.This paper takes F company,an online game enterprise,as the research object,and the method of case study is adopted from the following aspects:Firstly,the background and significance of the research are expounded,in order to solve the company founder and outside investors for control of the issue for the purpose,then determine the research ideas and research content.Secondly,this paper introduces the theory of control right,corporate governance structure,equity structure,financing structure,control right,private income and other related theories.Taking F company,an online game company,as a case study,this paper analyzes the control contest existing in the company's operation and development.Thirdly,the case is analyzed from four aspects: the cause of control power struggle,the implementation conditions,the two sides vying for control and the negative effects of the competition for control.Finally,in terms of finding ways for founders and investors to avoid conflict,five suggestions to improve the corporate governance structure,such as prudent evaluation,introduction of external investors' risks,reasonable selection and allocation of financing methods,self promotion of entrepreneurs,transfer control at the right time.It is hoped that this study can provide reference for the reasonable transition of control right in the development process of small and medium-sized private enterprises represented by F company.