I was reading through SEC filings of a newly IPO'd company, and I am not too experienced with going through them yet, and am trying to learn.
Among other things, I saw this in regards to shareholder rights:
-The company CEO would control 51% of the voting power.
-Shareholders are not allowed to take action through written consent. They are only allowed to do so during special meetings or annual meetings.
-Afforementioned special meetings may not be called by stockholders (even majority). Only by majority of BOD, CEO, etc.
Do most companies have these rules in place to prevent take overs and unwanted changes in the body of the company? Is this common?
Also, as a shareholder, would voting be useless since the CEO will always have majority?
Submitted November 07, 2021 at 12:45AM by Fri3ndlyHeavy https://ift.tt/2ZYAdBz
