I remember hearing about Steve Jobs being forced out of Apple, and the McDonalds brothers being forced out of McDonald’s. In both instances, the method of forcing was a buyout, but I don’t understand how this can be considered “forcing” if they consented to sell their shares. I feel that I am misunderstanding what happened, and just want to know how a shareholder can be forced to sell their stake in a company.
In: Economics
Different countries have different mechanisms, but in general a publicly traded company can legally force a minor shareholder to sell their shares at market price. This is usually reffered to as a “squeeze out”.
I don’t specifically know how it happened with Apple and McD, but in this scenario Jobs wouldn’t have to consent to the sale, but he would have needed to voluntarily sell some stock before this, in order to even get to the point where he can be squeezed out (usually you need to own 10% or less of the company for this to become an option)
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