The directors of a company could intentionally undervalue their company A when selling to company B, if company B provided them with an inducement greater than the value of their holdings in company A.
Only the shareholders of company A would suffer.
This problem is more common when company A has two classes of shareholders, voting and non-voting.
Michael Webster
www.bizop.ca
Slashdot Mirror
The directors of a company could intentionally undervalue their company A when selling to company B, if company B provided them with an inducement greater than the value of their holdings in company A. Only the shareholders of company A would suffer. This problem is more common when company A has two classes of shareholders, voting and non-voting. Michael Webster www.bizop.ca