Re: Can anybody explain to a numpty?
there's two things in your comment :
- depending on the company 'incorporation' and t(he local laws being publicly traded does not means that shareholders at large have any control over who is on the board. Ttypical examples are :
* Michelin ( Société en comandit par actions ), the biggest shareholder ( namely the Michelin familly ) gets to name the Commanditaire ( parse that as CEO ), there's a drawback though, no limited liability... if there's a hole in the accounts, the biggest shareholder has to plug it with it's own money so that the accounts are at 0 at the end of the year.
* Ericsson ( and several other Swedish companies ) have two kinds of shares, A shares and B shares. The A shares are traded on Swedish market, and nowhere else, each share brings 10 voting right. the B shares are traded in various places including USA, each one brings one vote. between them Investors AB ( Wallenberg familly holding ) and the Handelsbanken controls most of the A shares... while it represents 10ish % of the shares it represents more than 50% of the votes. ( and thus control the board )
So depending on how Toshiba has been 'incorporated' according to Japanese laws shareholders might just be there for the ride and nothing else.
- Going private brings lots of advantages : you don't have to bother with a board would be the first one.
( since said board represent the shareholders... and going private means you have a single shareholder )
the second one would be that the CEO is just an employee like any other employee, you're not happy with him/her, you fire him/her, the third would be that you define the strategy and the CEO is here to execute it ( if not, see second advantage )
Now it's true that the disadvantage is that you have a smaller investment pool ( namely your single shareholder ), but if said shareholder owns enough money ( either as a private person like Elon & co or as a company/investment group ) it's not an issue.