Re: Genuine question
Why are there complex rules like this for buyouts?Why aren't you just allowed to buy on the open market and then place your people on the board once you have 51%
These rules only apply to publically traded companies. I.E. Those that list themselves on a public stock exchange and agree to the rules of that stock exchange - and the laws surrounding being listed on a public stock exchange in exchange for being listed. Don't want to comply to the stock exchange rules and/or laws that kick in when you become lsited on a stock exchange? Stay a private company. No-one's forcing a company to become public or to allow the shareholder threshold to be passed (private companies have a restriction on the number of shareholders they are allowed to have before being required to become public. Again this varies country-by-country, the US Securities Exchange Act of 1934, section 12(g), generally limits a privately held company to fewer than 500 shareholders. This happened to Facebook, they passed the US private-shaerholding limit and thus had to become public, but Facebook could have prevented passing that limit, they chose to allow that limit to be exceeded. ).
Perhaps just some rule that you can buy out the remaining shares at the current price once you reach some 51-75% ownership.
You can. It's called forced/compulsory aquisition of outstanding shares. It kicks in when the appropriate share vote threshold is reached on accepting the takeover. It's different in each country/stock exchange, however it's more like 90% shareholder approval (maybe it's 95%? or 92%? something like that, again depending on the rules of the country/stock exchange the company is listed on). Once this threshold is met, remaining shareholders shares are compulsorily aquired at the takeover price.
Biting the hand that feeds IT
