0

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

1

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 at 10:04

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.