5 ms·

I think the law is bad policy, but you can get around this stuff with things like Class F shares: https://thebusinessprofessor.com/en_US/business-governance/cla

• randyrand 5y ago
  If you own solely class F shares you'll need to liquidate your class F shares to pay this tax. If you're lucky you'll have enough common stock to sell off. But eventually you'll run out.
  • gonehome 5y ago
    They can be structured so that the still retain (nearly) total control (I personally think this is a good thing). See: https://techcrunch.com/2020/08/21/palantir-three-class-voting/ https://techcrunch.com/2020/08/21/palantir-three-class-votin... "Palantir wants to push the envelope further though with a three-class structure that would prioritize Thiel, Karp, and Cohen above all others. In Palantir’s model, there would be a Class A share with 1 vote, a Class B share with 10 votes, and a special “Class F” share with variable votes. Class F shares would share 49.999999% (six 9s in the decimal – I counted twice) of the voting power of Palantir at all times, regardless of the underlying ownership of shares. Important to note that that is not a “majority” and thus they will not have literally a controlling stake in the public company."