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But why do you need to acquire the non-voting shares to acquire the company?
by Ericson2314 5y ago
But why do you need to acquire the non-voting shares to acquire the company?
- jcliff 5y agobecause nonvoting shares still represent economic ownership of the company. for example, they get pro rata dividends if dividends are ever declared.
- JumpCrisscross 5y ago> why do you need to acquire the non-voting shares to acquire the company? Control doesn't alleviate the duties, fiduciary and of loyalty, the controlling person has to its shareholders. An acquirer who only bought the votes would still need to act in all shareholders' interests (or face litigation). To have a free hand, and full access to those cash flows, an acquirer thus must purchase the whole company.
- Ericson2314 5y agoI feel like sooner or later a PE firm is going to try not buying those shares, and argue the new policy is indeed in the shareholder's interests.