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The spirit of this law is very noble. It protects minority owners of companies from abuse by management or majority owners. Are there some unintended consequen
by mathattack 10y ago
The spirit of this law is very noble. It protects minority owners of companies from abuse by management or majority owners. Are there some unintended consequences, though? Could a competitor buy 1 share from an ex-employee to get access to the corporate accounts?
- conorgil145 10y agoI suppose that would be possible, but I think that it is very common for private companies to work into their stock agreements that they have right of first refusal for stock sales. Therefore, they should theoretically be able to restrict a competitor from purchasing their stock by simply purchasing it from the seller themselves instead of allowing the sale to go through.
- Spellman 10y agoVery likely you need to hold some threshold of stock similar to how certain amounts of stock provide added benefits such as representative voting.