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There are many ways to loose control of your company without selling it upfront. For example if you take money from an minority investor with the promise of an
by fifilura 2y ago
There are many ways to loose control of your company without selling it upfront.
For example if you take money from an minority investor with the promise of an IPO (so they can make profit from their minority share).
After the company goes public, control is much more iffy. You may for example not have your place in the board anymore even though you are majority owner.
- nradov 2y agoYou're not making any sense. Unless the majority owner has a different share class with reduced voting rights then they can absolutely control the Board.
- fifilura 2y agoYeah brainfart. What i meant to say that in a public company you are expected to choose. Either you have control of the board or you are the CEO having control of the operations. Not both.
- nradov 2y agoThere is no such expectation. Some corporate governance experts prefer that the Chairman and CEO roles be split in order to prevent conflicts of interest and protect the rights of minority shareholders but there are many companies where a single person does both.
- bitwize 2y agoBill Gates was chairman and CEO of Microsoft for the longest. Have things changed since then?
- Etheryte 2y agoThis makes no sense whatsoever. If you're the majority holder then by definition you hold more than 50% of the stock and can force whatever resolution you see fit. Perhaps you meant largest holder, but without a majority?
- SargeDebian 2y agoOr multiple stock classes, where done have more voting rights than others.