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.
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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…
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