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Is there a limit to a recursive structure of 51% holding companies? If not, one entity could hold all the decision making power without basically owning equity
by WanderPanda 6y ago
Is there a limit to a recursive structure of 51% holding companies? If not, one entity could hold all the decision making power without basically owning equity (in the limit)
- MHordecki 6y agoEach company C_n would own 51% of the company C_{n-1} (with C_1 being the actual company). At every point each company owns a sizable chunk of equity.
- abdullahkhalids 6y agoNice. You could even have a fractal structure. I dare a billionaire to make a Mandelbrot set with a bunch of shell companies.
- cschneid 6y agoSomething like this was a minor plot point in Accellerando (book by Charles Stross). IP being rapidly bought & sold between a network of related inter-owned companies, to avoid ever holding it long enough to be sued or something.
- strulovich 6y agoThat problem exists. For example, Israel enacted a law to prevent that after such problems arose: https://en.m.wikipedia.org/wiki/Israel%27s_Anti-Concentration_Law https://en.m.wikipedia.org/wiki/Israel%27s_Anti-Concentratio...