Is it required for a listed company to have a Conference Call for authorization of shares ?
August 29th, 2009 | by admin |The company I invested money into wants to have more shares authorized to pay down some debts. They are having a conference call but I think they got something up their sleeves and that’s why I need to know if a conference call is obligated for dilution authorization. Thanks.
They don’t need shareholder authorization to make changes in the capital structure (which is what this is), that’s something companies do as a normal course of business. If they were doing something that required shareholder authorization the only thing they are obligated to send you is a proxy to vote on. They are doing a conference call because they believe its the right thing to do, as a shareholder you can chose to participate if you want, but they are in no way obligated to do it just like you have no obligation to continue to hold the shares. If you really think they are doing something that is now in the best interest of the shareholders, sell the shares, its that simple.
One Response to “Is it required for a listed company to have a Conference Call for authorization of shares ?”
By financegal27 on Aug 30, 2009 | Reply
They don’t need shareholder authorization to make changes in the capital structure (which is what this is), that’s something companies do as a normal course of business. If they were doing something that required shareholder authorization the only thing they are obligated to send you is a proxy to vote on. They are doing a conference call because they believe its the right thing to do, as a shareholder you can chose to participate if you want, but they are in no way obligated to do it just like you have no obligation to continue to hold the shares. If you really think they are doing something that is now in the best interest of the shareholders, sell the shares, its that simple.
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