Actifio squashes employee shareholders ‘like cockroaches’

blocksandfiles.com

23 points·sudeepj··10 comments

> The courts have held that, absent fraud, misrepresentation or misconduct, a corporation has the right to eliminate minority stockholders through a reverse split.

I am sorry, but this sounds extremely implausible.

From what I am reading, the company basically tanked, which was the cause for the shares the loose value. Subsequent investment take in at already low valuation was simply an attempt to revitalize basically bankrupt business.

Ok so the company tanked, and they took in investment.. But none of that makes it necessary to do a reverse split.

> Ok so the company tanked, and they took in investment.. But none of that makes it necessary to do a reverse split.

Perhaps doing the reverse split was a condition under the investment? I am unsure how this fits into the picture. Did reverse split reduce share values further?

The point of the reverse split is to make sure that people with a small position end up with less than one share so they can be forced out.

In the best case this is a move to reduce administrative expenses relating to stockholders who own an insignificant part of the company.

In the worst case it's a move to steal their shares by forcing them to sell at an unfair price.

How does owning a fractional shares makes forcing out easier for the rest?

Sounds like capitalism. What do we expect? lol

Still good to be reminded of the insanity.

What part sounds like capitalism to you?

Perhaps, Because how a board treats shareholders is also part of capitalism? Did you assume complaints about capitalism always have a laborer bent?

Capitalism is a system in which the owners of capital have most (or all) of the power.

So, every part?

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