Chapter 7: The Importance of Stark Industries’ Shareholding Structure

"Oh, my dear Uncle Obadiah, we don't have a rule about kicking out an important shareholder from a meeting. And being late? That's not really a big deal for us, is it?"

Tony Stark wasn't about to let his invited guest be thrown out before even stepping into the ring. So, he immediately stepped in to defend Zhou Yi.

Everyone in the room knew one thing: Tony Stark was by far the worst offender when it came to being late for shareholder meetings—no exceptions.

"I agree with Mr. Stark. Mr. Zhou is a key shareholder, and his input is essential to our business decisions."

Since Tony had taken the lead, others naturally followed. Seeing who had spoken up, Obadiah Stane's already dark expression became even darker.

Stark Industries was founded as a military weapons manufacturer during World War II. Thanks to two generations of genius inventors, the company became one of the world's leading multinational corporations in just a few decades.

In the high-tech industry, few could compete with Stark Industries—only Osborne Industries, Hammer Industries, and Japan's Yashida Corporation were in the same league. But without a doubt, Stark Industries was the dominant player.

This corporate giant had enough financial power to surpass the GDP of half of Europe's countries. Naturally, its shareholder structure was complex.

Tony Stark owned about 23% of the company's shares, making him the largest shareholder. He also held the patents that kept the company running, including those inherited from his father. His position in the company was untouchable—unless Stark Industries' stock value suddenly plummeted. But even then, the U.S. government would never let that happen.

Next in line was Obadiah Stane, a founding member who had worked alongside Tony's father. He was the second-largest shareholder, holding around 11% of the company's shares. He also controlled the company's day-to-day operations—at least as long as Tony allowed it.

Then came Zhou Yi. Initially, he only owned 2% of the shares. However, thanks to the IT sector's rapid growth, he leveraged his stocks and made deals with Wall Street investors and other shareholders, slowly increasing his stake to 6.7%. This made him the third-largest shareholder.

The remaining shares were distributed as follows:

About 5% was held by scattered retail investors.

Wall Street financial moguls controlled 7%.

The U.S. Air Force and Army collectively held 10%.

Osborne Industries owned 4%, and Yashida Corporation had 5%. This kind of cross-shareholding was common among large corporations.

The final 28% was divided among over twenty different companies and families.

According to Stark Industries' rules, shareholders with less than 1% ownership had no right to attend shareholder meetings. As a result, only about six or seven people were eligible to be present.

Most of these shareholders wouldn't dare offend a corporate heavyweight like Obadiah. In fact, many of them sided with him. However, the one speaking out against him wasn't part of that group.

It was the U.S. military.

The moment they voiced their stance, Obadiah knew there was no point in arguing further. His expression stiffened, but he conceded.

"Fine. That settles it."

Obadiah's tone was cold as he turned back to Zhou Yi.

"Mr. Zhou, we were just discussing a proposal for expanding our arms deals to sixteen regions in the Middle East. According to our financial analysts, this could generate an annual profit of $20 billion. The more they fight, the more we earn, and the stronger our country's influence over the region becomes. I'm sure everyone here understands the logic. If this deal goes through, your dividends will be substantial, don't you think?"

He was making a final attempt to sway the shareholders with money. And, as expected, some of them hesitated.

$20 billion was a lot.

But everyone in the room knew that was just the reported figure—the one used for tax purposes. The actual profits were likely double that, if not more.

Of course, Stark Industries wasn't foolish enough to evade taxes outright. The U.S. Internal Revenue Service (IRS) was infamous for its aggressive enforcement. Even a powerhouse like Stark Industries wouldn't dare provoke them.

Instead, like all major corporations, Stark Industries used legal loopholes to minimize tax liability. The most common strategy? Charity donations.

Firefighter relief funds, veteran support, African children's aid—hell, even a dead dog could be an excuse for a fundraising event. All of it was just tax planning disguised as philanthropy.

Tony Stark's reputation as a generous donor? Built on countless charity galas.

For shareholders, dividends had little to do with reported earnings. Take Zhou Yi, for example—if he agreed to this proposal, he'd officially receive a $1 billion dividend. But in reality? His actual earnings would be closer to $2 billion.

That was the kind of wealth that made people lose their minds.

"Okay, Mr. Stane, we all understand your point. Nobody here wants to go against Franklin's interests. But I have a small question."

Zhou Yi leaned back in his chair, flipping through the documents Obadiah had prepared.

"The list of armed groups we're supplying… Not all of them are exactly friendly to our military, are they? What happens if, one day, our missiles end up hitting our own people?"

"We have no 'own people,' Mr. Zhou. We're businessmen," Obadiah said, emphasizing every word.

"Of course, I understand." Zhou Yi smirked. "But the American public doesn't see us as businessmen. They see us as Americans. If my concerns turn out to be right, and something goes wrong, who do you think the angry American public will blame? Just to be clear—I'm vetoing this proposal."

The moment Zhou Yi finished speaking, Tony Stark immediately chimed in.

"Hey! Just to be clear, I'm not against it, but I'm not supporting it either. In other words, I won't be taking responsibility for this—definitely not!"

He made sure to repeat himself for emphasis.

The military wasn't on board, and Wall Street didn't want to get involved either. While they were all about making money, most of them were Jewish. And the most likely conflict in the Middle East? Jews versus Muslims.

They weren't about to arm the very people who could turn their weapons against them.

Osborne and Yashida Industries, Stark's rivals, were more than happy to see him lose a lucrative deal.

In just a few minutes, Obadiah's entire plan fell apart. Even if he racked his brain, he knew there was no way to salvage it.

His face remained dark as he sat silently, not speaking for the rest of the meeting. But everyone understood—this wasn't surrender. This was the calm before a storm.

Even Tony Stark was smart enough not to poke the bear.

As soon as the meeting ended, Obadiah left Stark Tower with his entourage, clearly in no mood to see those "traitors" any longer.

Watching him leave, Tony swirled his drink and sighed.

"Well, that certainly didn't go over well, Yi. Maybe we were a bit too harsh?"

"If we were, that's your problem. Obadiah's your uncle, not mine." Zhou Yi rolled his eyes and downed his champagne.

"Hey, can't you at least pretend to sympathize with me? The guy practically raised me!"

Zhou Yi had known Tony long enough not to fall for that act. This was the same guy who suggested opening a champagne bottle right after the meeting.

"You know what? Never mind." Tony changed the subject. "Since we haven't seen each other in a while, how about a party? The ladies will be thrilled to see us. Of course, I get first pick."

"Later, man. I've got a 'meet-the-parents' event to handle first."

Tony smirked. "Now that's a problem I wouldn't mind having."

As Zhou Yi left, he called back, "By the way, inviting Pepper to the party?"

Tony glanced at a hologram of Pepper Potts and chuckled.

"Why not?"

---

Join the "Marvel's Sun God Membership" for advanced chapters & faster updates here: patreon.com/KZ478