Otherwise a minority shareholder could just sack the Board, install their own favourites and then the Board would decide to give all the profits to the minority shareholder.Ĭorporate governance, Boards, non-exec directors and remuneration commitees!! Always a good time. Tencent is shutting down its game streaming service, the latest retreat by Big Tech in the face of a sweeping crackdown by Chinese regulators that has sharply slowed growth at some of the. The powers/set up of the Board are key to this as that is the legal way that someone tries to take control, or enforce the control they already have. Offsetting that, tencent are not going to have invested hundreds of millions without gaining some control and oversight of the company.the negotiations and trade-offs will have made several lawyers very rich. So even having 40% of the Board may be irrelevant if Tim Sweeney has right of veto and final say etc. says Google went as far as to explore buying Tencent Holdings’ stake in the game maker to stop it from launching its. Tencent also bought a majority stake in Riot Games in 2011 and acquired the rest of the company in 2015. Given one person owns 50%+ they may well have specific rules/clauses written into the Board structuring giving that person more power. Tencent owns a 40 stake in Epic Games, the maker of popular video game Fortnite. Next, the Chinese partner Tencent Holdings (TCEHY) has 40. My completely naive expectation would be that Tencent gets 40% of the seats on the Board, but not enough to wield automatic majority votes, or completely fill whatever non-exec remuneration committee Epic has. Epic Games is owned by Tom Sweeney, the companys founder, who owns 50 of the company. Usually I think this is negotiated if/when a sale of shares goes through. FWIW - i think owning significant shares of a company entitles the owner to representation on the Board.
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