Doing a little BizOrging today, and I was looking over the notes Mr. Mad Dog so graciously provided, when I discovered something odd. Not with the notes themselves, which are phenomenal, but with the law of corporations in general. The topic for today (or Monday, I suppose) is "Minority Shareholder Oppression." This addresses the problem in corporations where the majority of shareholders control the power in a corporation because they elect the board of directors and dominate all matters subject to a shareholder vote.
One of the examples of such oppression was the following note:
d. Majority puts “squeeze” on minority to sell shares at low price (or eat them)
Now, I don't know that much about business, and I really don't know much about the law that governs it. But somehow it just seems morally objectionable for majority shareholders to eat minority shareholders as a means to maintain control over a corporation. I'm not a fan of cannibalism in general, but to employ it as a business tactic? Sure, it reduces competition, but surely we have to draw the line somewhere.....
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5 comments:
Yeah, I draw the line at drinking the blood of children.
Are you implying that I am the problem here, Elise? I'm not the one devouring my business counterparts whole rather than allowing them take part in the business.
No, I am not implying anything. After all, do you have any business counterparts? No. Why? Because you ate them all.
My outlines are making the rounds, and i've gotten a few compliments on their thoroughness, which i greatly appreciate. Further, i sincerely hope that they help you all out.
Still, they're not perfect. Apparently, my TnE outline contains the following line in reference to some complicated doctrine or another:
"It's complicated, and i don't care"
Mergers and Acquisitions are conditions almost always used together in the corporate world to make reference to two or more organizations becoming a member of to type one business. More often than not a merging is where two businesses of approximately equivalent size and durability come together to type a single business. Both companies' shares are combined into one.
Mergers Acquisitions
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