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by propter_hoc 411 days ago
It's because the investors still need the founders to run the business, usually.
1 comments
RainyDayTmrw 411 days ago
More bluntly, why wouldn't/can't the other common shareholders sue?
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vkou 411 days ago
Because then they'd be left with their original stake, but in a worthless, bankrupt company.
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kadoban 410 days ago
Sounds like leverage to me.
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vkou 410 days ago
They are always free to give the worthless, bankrupt company they own more money, and thus avoid dilution.
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