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Because the money is on the bank, and it's shareholders property. The shareholders can change the administration council and hire people that will use the accum
by edpichler 9y ago
Because the money is on the bank, and it's shareholders property.
The shareholders can change the administration council and hire people that will use the accumulated money to make more money, or use it paying dividends. The shareholders are the bosses, and chooses who occupies the administration council.
I don't know if my hypothetical example was clear.
- repsilat 9y agoIf the company is closely held the shareholders may not be able to meaningfully affect the composition of the board of directors, and so may not be able to extract any value from it except in bankruptcy.