My partner was informed last week that her publicly traded company is shutting down, and from my current understanding there was no buy out/merger or bankruptcy filing. Shareholders didn’t vote on it and it is not a single majority owned company (over half company owned by individuals or public companies). I’d like to know the scenarios in which this could happen.
In: Economics
One of the answers not mentioned here is the board of directors. Every corporation has this. They effectively are the bosses for the CEO, and are there to “speak” for the shareholders, since on the board, they will typically own a majority of the voting shares of the company. A company wouldn’t agree to “shut down” unless the board of directors was onboard. If they weren’t onboard, they would fire the CEO and put in someone else. So if your partner’s company is shutting down, it’s because the board of directors is in agreement. It also likely means they previously looked for and couldn’t find anyone willing to buy them out.
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