CLZ 0.00% 0.1¢ classic minerals ltd

I was wondering -- just How a Company could plan a strategy to...

  1. 407 Posts.
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    I was wondering -- just How a Company could plan a strategy to -- Go Private. after Garf revealed some of the plans that must have been discussed--
    https://hotcopper.com.au/data/attachments/6339/6339199-57dfe7b7b21875ac06f62205b4b9b58c.jpg

    Now one of the ways could be as follows--
    Say a company has one Billion shares -- Five major Holders x 11% each and Retail Holder the balance at 45%..

    A Consolidation of ay 100-1 --Would still have the Major Holders at 55% and Retail at 45% but the company only has 10million shares
    Major holders 5.5million and Retail 4.5million.

    if this is followed by the Issuing of another Billion Shares in the form of" Management cost or Loan Repayments to the Five Major Holders "--(spread evenly for ease of explanation) -- the total Company share on issue is One Billion Ten Million--- 1,000,010,000,000
    -- With the Five Majors Holding 1,000,005,500,000 and retail now holding 4,500,000.

    To protect share Holders -- of course it has to be put to a Vote---
    Conflict of Interest -- Excludes a "Recipient" of shares to Vote on a Resolution themselves --
    So - Each Resolution that involves One of the Five Majot Holders -- (where of course they are excluded )-- is put to a Vote of remaining eligible Share holders -
    and the Vote is passed by the Four Eligible Major Holders..---

    All in Theory Only ---
    The Planning involved would be very intensive and would involve much discussion and Trust among the Major Holders --
    -
    so Yes Garf --- -If the Privatization was being discussed as you allude -- here is a possible way for it to be done...

    Not saying , that is what has happened or has been planned ----
    - just my opinion on a way it could be done.


 
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