eli5: What, if any, are the functional differences between someone buying 51% of your company and 100% of your company?

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Are there even any large functional differences?

Obviously in terms of decision making, there is no difference since 51>49 so you control who is on the board.

But what about company assets? If you own 51% of a company, I guess you do not own the assets entirely.

Do you have more freedom and power in this respect by having 100% ownership?

Thanks!

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7 Answers

Anonymous 0 Comments

Look at it from the other direction. You can go and buy 100 shares of any public company, what’s the difference between that and owning zero?

You don’t control the company, but you still benefit from owning it, and the directors still have a duty to grow its value for you

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