If non cash rich billionaires have to sell stocks to pay taxes how do they stay in control of their companies?

Question

If non cash rich billionaires have to sell stocks to pay taxes how do they stay in control of their companies?

In: 14

Answer 1

You could avoid selling by taking out a loan against your shares to pay taxes

Also you can have “preferred” shares which are worth the same as regular shares in terms of ownership of the company, but can decide those shares get to vote (for instance) 1000 times each in order to maintain voting control of the company even if you own fewer than 50% of the outstanding shares.