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There's plenty of discussion here (and the original thread back in March) about the social/moral/ethical issues behind this. What about the legal side? Is there
by benjamincburns 13y ago
There's plenty of discussion here (and the original thread back in March) about the social/moral/ethical issues behind this. What about the legal side? Is there any way he's doing this legally - in such a way that the SEC, FTC, or similar gov't entities wouldn't shit all over it if they decided to pay attention? Even if he created a corporation with real stock, is it possible that he's actually legally bound to it?
In other words, does the continued value of the stock hinge on your faith in his word, and your faith that the government won't someday intervene?
- gamblor956 13y agoIt's perfectly legal, since he isn't legally obligated to do what his shareholders vote. Moreover, the fact that his shareholders voted for him to do something (or not do something) would not be defensible in any legal proceding. (An individual is distinct from a corporation; a contract that only binds the corporation does not also bind him.) Also, while the dude promised to keep his shares non-voting, he didn't make a legally-enforceable promise, so he can simply vote his 96% anytime he feels like it.
- benjamincburns 13y agoSo if what you're saying is true, and assuming that you're legally buying stock in an actual corporation, the value only hinges on your faith that he'll keep his word.