1 | 1. Dilutive Capital Raises | Repeatedly issuing new shares at low prices to institutions or insiders | Shrinks the ownership % of existing shareholders who can’t afford to participate |
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2 | 2. Strategic Placements | New shares are issued to “friendly” investors who support management’s agenda | Shifts voting power away from retail; management-aligned block gains control |
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3 | 3. No Preemptive Rights | Retail shareholders often don’t get rights to buy new shares before others | Retail has no way to maintain ownership % — gets diluted repeatedly |
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4 | 4. Bundled Resolutions | Multiple major changes are grouped into a single vote | Shareholders are forced to accept unwanted terms to approve something they need |
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5 | 5. Withholding Information | Insufficient or delayed disclosure around placements, terms, or risks | Prevents shareholders from making informed decisions or rallying opposition |
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6 | 6. Board Stacking | New board members or execs appointed without shareholder input | Control remains in hands of insiders or key institutional partners |
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7 | 7. AGMs/EGMs with Little Notice | Important meetings held quickly or at inconvenient times | Limits attendance and participation from retail investors, especially overseas |
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8 | 8. Related-Party Deals | Selling assets or IP to entities connected to insiders | Value may be shifted out of the public company with little benefit to retail shareholders |
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9 | 9. Rights Issues with Complex Terms | Designed to confuse or discourage retail participation | Institutions are better equipped to take advantage, retail gets left out |
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10 | 10. Buybacks that Exclude Retail | Company buys back shares from institutions at a premium | Retail is stuck with lower value or shrinking influence |
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