Or why a founder of a business who wants to control 51-75% of a company after it goes public is daft. He should aim for a decent float.
Company law says ownership of 50% plus one share entitles an investor to take control of a company. In practice, the picture is often much less clear. A simple majority can be achieved with much less, so long as some investors can be relied upon not to cast their votes. The UK experience http://www.guardian.co.uk/business/2011/nov/20/boardroom-control-minority-shareholders
In S’pore, in early November 2011, the chairman of K-Reit rejected a call to call for a poll at an EGM, presumably because the law didn’t compel him to because there was no five-member call for a poll or a request by unitholders controlling 10% voting rights. Some minority unitholders objected to a deal* betwen K-Reit and its sponsor Keppel Land. But not enough turned up at an EGM to demand a poll?
*Details tomorrow in another posting on corporate governance.