I have read that companyA now have 60% shares of companyB. Does it mean that companyA have the business decisions for CompanyB? or this still depends on the agreement or board seat?
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Do you mean 60% of the shares or 60% of the voting shares? That won’t always be the same thing.– Mike ScottCommented Nov 20, 2020 at 13:18
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1This question is about companies and has nothing to do with personal finance and money.– Dilip SarwateCommented Nov 20, 2020 at 23:20
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where should i ask this in the stackexchange umbrella?– letthefirefliesliveCommented Nov 20, 2020 at 23:51
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@DilipSarwate this could very well be about personal investing, since majority-owned subsidiaries can still be publicly traded.– RonJohnCommented Nov 21, 2020 at 7:57
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2 Answers
Company A can ask for a shareholder meeting at any time. And for any decision that doesn’t require more than 60% majority they will have the majority.
If Company B set up rules that some decisions need say 2/3rd majority then Company A would likely not have bought 60% of the shares.
answered Nov 20, 2020 at 13:16
One of the immediate side effects of gnasher729's answer is that -- at the very first shareholder meeting -- Company A will appoint "their people" to Company B's board of directors. It is they who will chose the CEO and President of Company B (or ensure that the existing CEO and President follow Company A's policies and goals).