4 ms·
Ideally the company has a dual-class structure where one class of share has more voting rights than the other - and you find someone who will sell them to you.
by arcticbull 3y ago
Ideally the company has a dual-class structure where one class of share has more voting rights than the other - and you find someone who will sell them to you. This will significantly reduce your capital risk. A dual-class structure is how some founders (like Zucc) retain majority control of the company despite a minority beneficial ownership stake.
You could probably also talk people into nominating you as their proxy at the shareholder vote.
- fakedang 3y agoIt's not possible to split into that structure post-IPO though - it's illegal. Most old companies haven't got that kind of share class separation.
- londons_explore 3y agoYou could theoretically, with shareholder approval, take a company private, split the share classes, and then IPO again and resell the shares to the same people. In the interim while private, some bank would be the 100% owner, with some contract saying they must re-IPO within 24 hours and resell shares for 1 cent to the original list of shareholders. And I don't see any reason you couldn't do all this on one day - you just need approval of 51% of the shareholders and the board.
- fakedang 3y ago> And I don't see any reason you couldn't do all this on one day - you just need approval of 51% of the shareholders and the board. Because filing for re-IPO is a very complicated affair in itself? Though the rest of it is fairly correct - it is basically the PE playbook.