Arianity t1_iu39ht4 wrote on October 28, 2022 at 6:04 AM

Reply to comment by hellothere564738 in ELI5 How can a public company become private? by hellothere564738

If they have a majority of shares in the company, yes. Companies have various internal rules (called bylaws) that dictate how decisions by the company are made. Generally speaking, those say if you have a majority, you can make binding decisions. If a minority could hold out, it'd make governing the company kind of impossible (also, it'd mean the minority had control over the majority's property)

There are exceptions/protections (you can't just vote to zero out those minority shares and not pay, for instance), but if you're in the minority of shares you're kind of along for the ride

Skusci t1_iu3av5f wrote on October 28, 2022 at 6:22 AM

Also bylaws for many companies specify at least a 2/3 or more majority to approve things like buyouts, or changes to bylaws (which could then reduce the votes needed for a buyout), but leave routine stuff to an ordinary majority. But they'll always leave some room so that a couple percent can't halt an overwhelming majority.