A consequence is that if the OP doesn't take up a new share issue, his holding would be further diluted.
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11 years ago
shareholder protection
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11 years ago
If publically traded the president could not keep this private. If the investors got pissed they would sell off, no one else would buy until the president got the can [one can or the other].
If the president dorked with the books to hid this then we got crime so he would be forced to leave and run for political office for the Republican Tea Party(tm).
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11 years ago
But that's not the case in hand. This is where the president owns a controlling share so his tenure is assured, and doesn't care if the share value becomes negligible. In fact it would be to his advantage.