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I had a former employer do something different but similar. They sold all the products to another company, paid all of the proceeds out as a bonus to the execs
by breischl 8y ago
I had a former employer do something different but similar.
They sold all the products to another company, paid all of the proceeds out as a bonus to the execs and big investors, and left the holders of the common stock (ie, employees who had bought their options) with a worthless, empty shell. Thanks for working hard and buying shares in the company!
- jammygit 8y agoWhat stops ordinary companies from doing this to ordinary shareholders?
- kingbirdy 8y agoThat no one would buy shares in the new company, making it worth dramatically less than the old one
- jungturk 8y agoFiduciary duties - I'm not sure if those are being left out of these anecdotes or there were actual issues preventing the obligations from being enforced. https://smallbusiness.chron.com/legal-relationship-between-shareholders-ceos-33637.html https://smallbusiness.chron.com/legal-relationship-between-s...