A conspiracy theory...7 Jun 2018 16:39
A conspiracy theory about a hypothetical company:
There is a hypothetical company that needs funding to continue to operate but the shareholders are unwilling to approve the creation and placing of more shares to resolve the funding issue. The intellectual property owned by the company is not easily valued so fund raising on the back of the IP is not currently feasible.
In the meantime the hypothetical company nears running out of funding and the directors have to consider that they will imminently be trading whilst insolvent, which would make them personally liable for any debts of the company.
What do they do?
Will they consider a pre-pack administration? Do the directors create a company and buy the IP themselves and then force bankruptcy on the original company. They could then list the newly formed company with articles that allow the board to create as many shares as they wish in the future so they would never face the problem of asking reluctant shareholders to approve future dilutions?
Until the hypothetical company updates shareholders there will always be some who consider conspiracies... As the saying goes some people would bite their own nose off to spite their face.
IMO, DYOR etc.