- This topic has 1 reply, 2 voices, and was last updated 7 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › June 2011 question 3 b (i)
Can you please explain me the second paragraph of this part.
If they have a rights issue, then the new shares go to the existing shareholders and therefore the existing shareholders still control the company because the have a vote at shareholders meetings.
If they have a new issue it means that lots of new shareholders will appear – they will have a vote as well, and there is a risk that the existing shareholders might end up being out-voted. (OK they still have a majority of the votes, but not a big majority.)