Just the other day I was asked the following question ‘Why would a company want to give up its shares to someone else? It would lose control over itself.’ At first I was stunned. Never had I been asked such a question and never had I thought about this way. But to put that aside, if already one asked, there may be others out there with the same question. So I thought, I’ll give it a try and clarify the terms ‘share’ and ‘shareholders’ a bit.
To begin with the answer I’d like to state that ‘a company’ is not a physical person with its wills and wishes. A company is a legal body, which operates solely based on the actions performed by people. People are the ones who also ‘own’ the company.
Continue reading