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The last outstanding share of a company is worth the value of the entire company. Selling the last share is typically a liquidation event where all assets are s
by slv77 11y ago
The last outstanding share of a company is worth the value of the entire company. Selling the last share is typically a liquidation event where all assets are sold to a third party and the cash is distributed to the remaining shareholder. At that point the comany has no value (all its assets having been liquidated) and is shut down.
Lets assume that the last remaining shareholder of Apple made the choice to sell his share to the company for $1 (not a very logical choice). The company still needs shareholders to operate and so the board would need to issue new shares. At that point the could simply grant them to themselves and take control of the company.
- mac01021 11y agoWhy does the company need shareholders to operate? Does our legal framework prevent a corporation from owning itself and appointing its own board and so forth?
- slv77 11y agoLaws vary based on where you incorporate but for the corporation to stay in good standing requires regular shareholder meetings. There are other corporate structures that don't require shareholders for things like trusts, non-profits, member controlled companies and cooperatives.