Comment by whoitwas
2 months ago
Right, but an entity or a number of entities could buy shares in a small cap company to own a majority stake without scrutiny. Seems like a good way to do espionage since corporations are global and have protected status.
Mechanically, how are a number of small <10% shareholders actually going to exert their influence? I guess they can coordinate to get their chosen board members elected, but won't it be pretty obvious that there is a huge coalition of foreign shareholders coordinating on votes? I think they'd be in violation of SEC reporting requirements in an unsubtle way.