If so, wouldn't this be unfair against shareholders as this would devalue their shares and voting rights?

  • please specify which jurisdiction – Shazamo Morebucks Sep 3 '19 at 12:05
  • I'm in Australia – Anthony Sep 3 '19 at 12:06

Not in

Changes in shareholding of private companies require the approval of all existing shareholders.

However, in general (for private and public companies), shares are issued for something of value to the company - cash or something else - and therefore of value to the existing shareholders. The directors (and shareholders in private companies) need to decide if this is in the company’s best interest.

  • Thanks dale. What about public companies? Do they still require approval from ALL shareholders? – Anthony Sep 3 '19 at 10:04

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