Comment by chii
7 hours ago
> wonder how he's still CEO.
it's because he controls the board by being the majority voting shareholder.
This is what happens when the gov't decides that it is legal for share classes with different voting rights. It ensures that you can sell equity to obtain money, without actually giving up control of said company at all. In theory, buyers would discount the sold equity due to this, but in practice, they don't (esp. if they're retail buyers).
Thanks for clearing that up. One less thing to sort out.
Interesting consequence.
EDIT: Initially, this is nuts. How can I give "own" part of a company and not have a say. Sounds like a silent partner scheme. Looks like this a per state thing.
There is this ruling Business Roundtable v. SEC (1990) that strikes down an SEC rule that prevented corps from going public if they didn't follow "one-share-one-vote".