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It can be done. For example majority shareholder can get a loan from the company, then make company issue new shares and buy new shares using funding from that
by lubos 13y ago
It can be done. For example majority shareholder can get a loan from the company, then make company issue new shares and buy new shares using funding from that loan. Cash doesn't even have to leave company bank account, it can be done as an accounting operation.
It is one of the examples of shareholder oppression and it is illegal.
There are laws protecting minority shareholders but you would have to take the case to court in order to protect your rights. It might not be worth if you are defending small stake.
- balladeer 13y ago> It can be done. and > and it is illegal. So, that's like "It can not be done" legally, right?