On Tue, Feb 3, 2009 at 18:00, Kerim Aydin <[email protected]> wrote: > > On Tue, 3 Feb 2009, Charles Reiss wrote: >> Which reminds me, one needs to consider how to deal with a corporation >> owning its own shares. > > Manumission?
When real corporations do this, it's to decrease the number of shares in circulation (and thereby increase the value of existing shares/decrease net dividends payout if dividends are constant per share). I suppose the outcome isn't too bad if this is not treated as a special case, a corporation owning a majority stake in itself would effectively lock out action expect by means allowed by the corporation's contract (assuming we allow that mechanism; if we don't then this is obviously a problem), but to maintain this, the corporation would need to pay a (hopefully) non-trivial upkeep cost. -woggle
