No 1. Who actually elects a Company’s BoD? I know it’s shareholders, but I also know that most of hareholders cannot oversee company’s day to day operations and own nothing other than its profits. So how the process goes? If I own shares of a Company, how can I vote ?
No 2. If I have enough money to buy 75℅ of total shares of a Company, how to approach a company regarding the same? Assume that the company is willing to sell.
In: 0
Shareholders. You usually never get the chance to vote because the voting shares are held by founders and major investors or the majority of shares already agree on the BoD so there is no proxy vote.
A tender offer
No. 1: The Board of Directors (BoD) is typically elected by the shareholders of a company. Shareholders vote in board elections based on their ownership of shares, and the process is usually carried out during the company’s annual general meeting (AGM) or a special meeting. Shareholders often receive proxy voting forms to vote for board members if they cannot attend the meeting in person. The more shares you own, the more voting power you have.
No. 2: If you want to buy a significant portion of a company’s shares (like 75%), you can approach the company directly, express your interest, and negotiate with the current shareholders or the board if they are willing to sell. It’s important to engage in negotiations, conduct due diligence on the company’s financial health and valuation, and potentially hire a lawyer or financial advisor to guide you through the process of acquiring the shares. The specifics will depend on the company’s willingness to sell and the terms you negotiate.
If you own shares of a company, you’re registered in their list of shareholders. They send you a ballot ahead of every annual meeting with the stuff that needs voting, including BoD members.
If you want to buy the company and they’re public you don’t have to approach them, you just buy their shares on the stock market (from other shareholders). If they’re not public then you need to have your lawyers talk to the owners’ lawyers.
1 — Shareholders get a proxy before each year’s annual meeting, at which time they can vote for board of directors by filling out a ballot online, mailing it in, or attending the annual meeting in person. votes are tallied by number of shares, so your 1 share vs. some mutual fund’s 100k shares mean their vote counts a whole lot more.
2 — To take over a company, you’d need to buy 50% +1 share to hold a majority and force other shareholders to sell. Usually, it doesn’t even require getting to 50%, because intent to do so — holdings over 5% need to be publicly disclosed to SEC — and alliances with other large holders can force the sale if there is interest. So maybe you’re some billionaire and buy 10% of the company’s shares, you reach out to Vanguard, Fidelity and get their fund managers on board with your takeover bid that gets up to 35% supporting, and the writing is basically on the wall…
Latest Answers