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!
In: Other
You and a friend decide to get lunch together, and pool your money to do so. You add in 49% while your friend adds in 51%. Your friend still has to take your tastes into mind when ordering the food, or deciding on which place to eat at – they cant just take all the money and buy porn with it or pay off their credit cards.
You go to lunch on your own the next day, and can eat what you want where you want, theres no one else that you need to take into consideration.
Basically, a 51% shareholder has a duty of care to the minority shareholders, and cannot act as owner of the company because they are not – they cannot use the companies assets or resources for their own benefit, and have to be careful of conflicts of interest that cause minority shareholders harm or damage.
A 100% shareholder has no burden of care for other shareholders because there is none.
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