How can a shareholder be forced out of a company?

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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

7 Answers

Anonymous 0 Comments

Most countries laws about stocks will have a provision for a forced buyout. In Norway, a majority shareholder, holding more than 90% of the stock in the company, can force a buyout. Furthermore, the same laws will typically have a provision for forced buyouts in cases of serious and permanent conflicts of interest between majority and minority owners. IIRC, the latter was the case when Steve Jobs was ousted from Apple.

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