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> The government should take a small ownership stake in companies that receive that kind of money. I'm only familiar with US law, not Danish so question for yo
by caseysoftware 6y ago
> The government should take a small ownership stake in companies that receive that kind of money.
I'm only familiar with US law, not Danish so question for you here.
Under US law, when a company closes (bankruptcy, acquired, etc), the common shareholders are last in line for payments after debt holders and preferred shareholders. Does Danish law have a similar provision?
If so, wouldn't being a debtor be a stronger position? Especially since the governments get to set repayment terms.
- flexie 6y agoYes, if we look at the bankruptcy scenario only (and provided the debt is not secured). But the shareholder is typically better off if there is an upside. What we saw in the last financial crisis is that large corporations quickly paid off their loans and the government - the taxpayers - missed out on the upside. The natural way to give government ownership would be through convertibles so they could chose whether to convert.
- caseysoftware 6y agoThat makes total sense, thanks for the info and perspective.