How can one individual buy the whole stocks of a company if the company is in the stock exchange? what will happen if 1% refuse to sell?

Question

How can one individual buy the whole stocks of a company if the company is in the stock exchange? what will happen if 1% refuse to sell?

In: 3

Answer 1

Simply put. They generally can’t refuse.

Some rules are mandated by the SEC (for shares/companies in the USA) and others are written into the articles of incorporation and by-laws of the company. All of these are available to shareholders and are public documents once approved.

Very generally speaking, once a majority of the shareholders vote to agree to the buyout, the remainder have to come along. They have no choice – they should have known the rules before they bought the shares.

Answer 2

Simply put. They generally can’t refuse.

Some rules are mandated by the SEC (for shares/companies in the USA) and others are written into the articles of incorporation and by-laws of the company. All of these are available to shareholders and are public documents once approved.

Very generally speaking, once a majority of the shareholders vote to agree to the buyout, the remainder have to come along. They have no choice – they should have known the rules before they bought the shares.