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> Potentially dumb question: once you own a certain percentage of public stock of a company, do they start contacting you for board meetings or decision-making

> Potentially dumb question: once you own a certain percentage of public stock of a company, do they start contacting you for board meetings or decision-making of any kind? Well, most decisions are outsourced to the board members, who's membership is the main thing shareholders vote on. Mandatory reporting kicks in at 5 percent ownership. At 10 percent, the SEC considers you an insider[1]. Before that, I doubt board members even know you exist unless you talk to them first (and they aren't taking your calls or mine). [1]: https://www.sec.gov/smallbusiness/goingpublic/officersanddirectors https://www.sec.gov/smallbusiness/goingpublic/officersanddir...

gimmeThaBeet 5y ago
Indeed, the sec and the company probably want to know about you, hence the 13D. There's also a bit where you can only hold a certain portion of a bank before being designated a bank-holding company. I don't know what scrutiny that brings, but Warren Buffett has been careful not to get Berkshire Hathaway designated it. I believe the limit is/was 10%, but then you could ask the Federal Reserve for a higher limit, which they did because of Bank of America or Wells Fargo I believe? I don't know a tremendous amount about it, but from what Buffett was describing, it wasn't the fed asking them about their bank holdings, they were asking the bank about them.