3 ms·

It's because the investors still need the founders to run the business, usually.

• RainyDayTmrw 1y ago
  More bluntly, why wouldn't/can't the other common shareholders sue?
  • vkou 1y ago
    Because then they'd be left with their original stake, but in a worthless, bankrupt company.
    • kadoban 1y ago
      Sounds like leverage to me.
      • vkou 1y ago
        They are always free to give the worthless, bankrupt company they own more money, and thus avoid dilution.