The Lucky Star Blessing the Whole Village

chapter 106

Chapter 106: Chapter 106: You Aren ‘t Amnesiac At All (Second Update)

Xiao Siqian paused slightly, reining in his slightly annoyed expression, and continued, “As for establishing a company, this collaborative model certainly has its advantages and disadvantages.”

“The company’s collaborative model is mainly based on farmers’ land or capital investment to establish a shareholding system or limited liability company.”

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“Under the company model, farmers’ capital investment or land capitalization will become company assets, which will be managed by the company as a whole, thus solving the production disparities in the cooperative process due to the individual lack of capabilities.”

“The company operates independently, with shareholders sharing benefits and risks.”

“So the advantages of establishing a company are: firstly, the company is established according to a relatively advanced modern property rights system, with a clear and reasonable rights and responsibilities system, which better protects the interests of farmers who participate in the cooperation.”

“Secondly, farmers can directly participate in production, and the market sales price of the products will be unified, eliminating the problem of interest loss caused by competition among cooperatives in a unified market.”

“Thirdly, the company operates independently and is managed uniformly, which effectively prevents farmers from breaching contracts. Talented and knowledgeable farmers can participate in the management and conduct market demand surveys and market forecasts, determine production projects and production plans, which is beneficial for the cultivation of local management talents and the growth and development of the company, realizing agricultural industrial scale operation.”

Xiao Siqian looked at Xiao Jinli’s bright eyes and continued, “Of course, the company model also has its shortcomings.”

Xiao Jinli nodded and said, “Well, Brother Xiao Quan, you go ahead and tell me.”

Xiao Siqian said, “First, the establishment of a company is more complicated than that of a cooperative, and the requirement for the registered and paid-in capital of a company is higher than that of a cooperative. For example, what standard should farmers’ land be used to participate in the shareholding, and so on.”

“Second, the company’s registration and operation must follow the modern corporate management system, independent accounting, independent profit and loss payment, which puts higher requirements on the management personnel participating in the company’s operation and management. However, there is a general lack of talent reserve in this area in rural areas. If external personnel are hired to participate in the management, combined with the unfamiliarity of farmers with the company’s operation, the professional managers do not get full trust and authorization, which affects the management decisions.”

“These two cooperative models have their own advantages and disadvantages, so, after all, this is a big matter, and it’s better for the village to consider it carefully!”

The last sentence was Xiao Siqian’s sincere advice.

However, he was now being stared at closely by Xiao Jinli, his expression serious and solemn.

Xiao Siqian felt his scalp tingling and uneasy, and he was about to break out in cold sweat.

He asked, “What… what’s wrong? Sister Jinli, why are you staring at me like

Xiao Jinli suddenly blurted out, “Brother Little Quan, you never lost your memory, did you?”

Her beautiful eyes stared closely at Xiao Siqian’s dark pupils.