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Old 03-23-2016, 06:29 PM   #21
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The voting rights go to the borrower while shares are lent out.
So if I borrowed 51% of all shares to Apple the day before the voting, I could elect myself chairman, negate all other voters shares voting ability, and take over the company... ?

Or at least some other weird mischief ?

Seems like a big loophole waiting to be exploited...
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Old 03-23-2016, 06:47 PM   #22
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So if I borrowed 51% of all shares to Apple the day before the voting, I could elect myself chairman, negate all other voters shares voting ability, and take over the company... ?

Or at least some other weird mischief ?

Seems like a big loophole waiting to be exploited...
Of course you would have a problem rounding up that many shares, and also the collateral needed, you would need to be several times richer than Bill Gates or Warren Buffet at a minimum. (Plus the execs likley would not provide their shares for loan as well, what percent of apple is insider owned?)
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Old 03-23-2016, 07:32 PM   #23
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So if I borrowed 51% of all shares to Apple the day before the voting, I could elect myself chairman, negate all other voters shares voting ability, and take over the company... ?

Or at least some other weird mischief ?

Seems like a big loophole waiting to be exploited...
Isn't that what hostile takeovers are all about?

Getting control of enough stock, often through heavy debt to the company involved, to get your way?
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Old 03-28-2016, 10:47 AM   #24
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Isn't that what hostile takeovers are all about?

Getting control of enough stock, often through heavy debt to the company involved, to get your way?
Yep. Also you don't always need 51%. 20% or so can be enough to gain de facto control over a company as not all shares vote.

However, you may be required to bring out a bid for complete takeover if you cross a certain share threshold (30% usually). For a listed company that is. It also depends on the bylaws of the company involved.

If you want to wreak havoc better to get other major shareholders in line with your view. It's what activists do.
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