cancel all existing shares

Vungle jingjong
Mar 15, 2018 5 Comments

Can the company y cancel all the shares of the company , to get rid of the exceo shares ? Those who bought their options will also get wiped out.

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TOP 5 Comments
  • AppDynamics c!5c0
    The company can issue lot more new shares, devalue everyone's holdings, and direct the new shares to only some of the earlier share holders - thereby wiping out the value of the shares held by those who did not get the new shares. So yes, it is possible, but attracts legal challenges.

    Many employee options have clawback provisions even after they are exercised. For example, Skype famously did this: https://techcrunch.com/2011/06/26/skypes-worthless-employee-stock-option-plan-heres-why-they-did-it/
    Mar 15, 2018 0
  • Vungle Mlnkbjvh
    It's not possible to take someone's assets without its permissions. Government can do it through legal process though.
    Mar 15, 2018 1
    • Amazon / Eng
      legend

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      legendmore
      What do you think about central banks printing more currency or a company issuing more shares?
      Mar 15, 2018
  • Amazon sksksksks
    Unless there's a civil forfeiture of the company and the stocks plummet to zero(which is very very rare) shouldn't happen
    Mar 15, 2018 0
  • Erickson Living / Other Blandname
    A company can buy back their shares but they have to give you market value.
    Mar 15, 2018 0