Chapter Questions
What techniques can be used for choosing shareholders?
What sort of general meeting must be held to approve capital transactions?
What power does a shareholder with a blocking minority have?
What purpose does a "Dutch clause" serve?
Why can management compensation in the form of stock create value?
How would compensating employees in stock run contrary to financial theory?
What advantages are there in buying $100 \%$ of the capital of a timited share partnership?
Why do some conglomerates continue to survive, despite the loss of value they generate? Can this situation last?
What is the advantage of cascade structures for the majority shareholder? And for other shareholders?
What is the difference between a holding company discount and a conglomerate discount?
A company manager has a $55 \%$ stake in his unlisted company, in which a competitor also has a $32 \%$ stake. The former is keen to dilute the shareholding of the latter, without diluting his own stake at the same time. What should he do?
Why is the shareholding of a family-run business unstable in the long term? What is the likely future of such a business? How can this process be slowed down?
Two managers have a $25 \%$ and $75 \%$ stake respectively in a company. They are keen to bring in a capital investor with the minimum dilution to their shareholdings. How should they go about solving this problem?