Research On Founder’s Control Protection Based On The Case Of N Company From The Perspective Of Corporate Governance

In the development process of the enterprise,entrepreneurs have invested a lot of human and material resources to make the enterprise survive and develop.Then,they seek external capital and technology investment out of the need for long-term development of the enterprise.During this period,the sponsors will lose control of the company,and even risk losing their own business.This paper hopes to introduce the theory of corporate internal governance mechanism through the discussion of the case of N Company,and explore the method of protecting the founder’s control.We hope to provide experience and lessons for entrepreneurs of small and medium-sized enterprises,dispel the concerns of start-ups about the loss of control,prosper the industry market,promote economic development,provide a promising and worry free way for entrepreneurs,and point out a solution to the financing of start-ups.First of all,take the current situation of N Company as an example to present the problem of control conflict and make preliminary preparations for the protection of founder’s control right.Through reverse deduction,analyze the scientific issues that generate the conflict of control rights,and put forward the protection of founders’ control rights based on this,and then collect,consult and sort out the relevant literature on scientific issues,and respectively study and sort out the definition,concept,nature and research status at home and abroad of corporate governance,corporate control,and corporate founders.In this process,it is found that small and medium-sized private enterprises have been ignored by researchers because of their small scale,nonstandard management,single structure,and their control conflicts rarely appear in the public’s view.The small and medium-sized enterprises in China play an important role in the national economy,and this study will have a strong practical,reference and guiding significance.Secondly,through the introduction of N Company,the industry situation,and the description of the control crisis,we will gradually analyze the changes in the corporate governance mechanism before and after the financing of N Company and the situation of the control conflict,propose the causes and consequences of the founder’s control protection,and put forward problems based on this,so that we can go deep into the study of the causes and how to solve them.Then,based on the case of N Company,we summarized the previous research status at home and abroad,proposed that the root of the protection of founders’ control rights lies in the conflict of control rights,and built the theoretical model required by this article with the principal-agent theory and incomplete contract theory as the framework,based on which we analyzed the motivation and process of the control rights struggle,focusing on the mechanism and interaction of material capital ownership and non material capital ownership on the control rights and management rights,Highlight the impact of the control struggle on N Company.Finally,combined with the corporate governance theory,existing laws and regulations and the theoretical framework of this paper,we propose effective strategies to protect the founders’ control rights in the financing process: after the forced dilution of the equity ratio,we should firmly grasp and strengthen the ownership of non material capital,build a dual equity structure with non material capital ownership,and hold shares with non material capital ownership agreements.Thereafter,the research conclusion presented by the case is summarized,that is,financing constraint is the source of the fight for control right.Financing divides the control right into legal control right and actual control right,which are mutually restricted and affected by stakeholders,and looks forward to the protection and assistance of the founders from the legal level.