The following is my answer to a Quora question: “What would happen to a Fortune 500 company if its majority shareholder suddenly donated all his wealth to charity?”
There are two kinds of companies in the Fortune 500. Some of them are publicly traded, and some of them are private. For the public companies, no single shareholder has such a large holding that shedding ownership of shares would seriously impact their valuation. After all, they are donating the shares to charity, not shedding them in anticipation of inclement financial news. There is no change in the management team, and the charity would not likely rock the boat, and just take the dividends.
If it is a private company, it may be possible that one single
shareholder owns an overwhelming majority of shares. However, unless there is a change in the
management team, this is not going to have a significant impact on their
revenue. There may be agreements in
place where the remaining shareholders have right of first refusal before the
largest shareholder can dispose of those shares.
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