61

Shareholders of Monsanto will get the money from Bayer. Shareholders are independent people or entities. Think of Monsanto as a thing that shareholders had. This thing is now being purchased by Bayer


54

In its basic form, a corporation is a type of 'privileged democracy'. Instead of every citizen having a vote, votes are allocated on the basis of share ownership. In the most basic form, each share you own gives you 1 vote. In most public companies, very few shareholders vote [because their vote is statistically meaningless, and they have no particular ...


36

It doesn't go anywhere. It stays in the company as undistributed profit. If the company has too much cash and no opportunities to invest it in further growth, it can be harmful to the company's return on equity. Therefore typically the company will sooner or later choose to distribute it to shareholders either in the form of (regular or extraordinary) ...


24

The bank won't let you because: Differences in required account features — Business accounts have different features (many of them legal features) that are required by businesses. For instances: Do you want to be able to deposit cheques that are written out to your business name? You need a business account for that. Your business could be sold. ...


24

Monsanto is a publicly traded company that trades under the ticker MON. The stock is owned by a wide range of owner around the world. The buyout offer from Bayer is an all cash offer. Bayer will buy all shares of MON at about $128/share. So if I owned 100 shares of MON, I would receive $12,800 or so for my shares. The deal has not yet been approved by ...


21

Congratulations! You own a (very small) slice of Apple. As a stockholder, you have a vote on important decisions that the company makes. Each year Apple has a stockholder meeting in Cupertino that you are invited to. If you are unable to attend and vote, you can vote by proxy, which simply means that you register your vote before the meeting. You just ...


19

If a company earns $1 Million in net profit (let's say all cash, which is not entirely realistic), it can do one of three things with it: Invest it back in the company (by buying more assets to generate future profits or paying off debt to reduce interest expense) Distribute it to shareholders (dividends, stock buyback) Do nothing (keep it as cash) On the ...


17

If the loan documents you signed do not specify otherwise, it is most likely that you have effectively personally guaranteed 100% of the loan, meaning the bank may try to go after you and your partner equally in the event of a corporate bankruptcy. It would be up to you, after the fact, to sue your partner for the extra 25% if you ended up settling the bank ...


14

They may keep the cash sitting in a bank somewhere as a cash reserve. They may invest it in stocks or bonds in other companies or in government units. They may invest in new factories or equipment. They may pay down debt. Etc. Do they have a "responsibility" to do anything in particular with it? In a sense. A corporation has a legal, fiduciary ...


13

It's tempting to think of a corporation as a real thing, because in many respects it seems to be. But it isn't a corporeal thing (despite the root word of the name). It may own corporeal things, and employ corporeal people, but it is not itself a real thing. Borrowing heavily from Prof Joseph Heath: It might be better to think of a corporation as the nexus ...


12

You can apply for a position with any company you like, whether or not you are a shareholder. However, owning shares in a company, even lots of shares in a company, does not entitle you to having them even look at your resume for any job, let alone the CEO position. You generally cannot buy your way into a job. The hiring team, if they are doing their job ...


10

You go public to raise money, to invest in the business and/or pay off the existing shareholders. It's really as simple as that. The advantage of being public is that your shares can easily be bought and sold, and so you can issue and sell new ones and your existing shareholders can sell out if they want to. The disadvantage is that you are much more ...


9

This form is due March 15. This year, the 15th is Saturday, so the deadline is Monday March 17th. Keep in mind, the software guys would have two choices, wait until every last form is finalized before releasing, or put the software out by late November when 80%+ are good to go. Nothing is broken in this process. Keep in mind that there are different ...


8

It looks like RK is encouraging tax fraud. Suggesting that one have their business cover personal expenses sounds like the advice that got Leona Helmsley in hot water.


8

If I own shares of a company, am I entitled to apply as position of CEO? Sure, but anybody else can apply too. Who decides? The corporate board of directors, who are nominally chosen by a vote of the stockholders. I say nominally, because in practice they are nominated by the current CEO and it's very rare for stockholders to veto the CEO's choice. ...


8

The airline might get a commission per customer from the credit card company It's a way for the airline to retain you as a customer. By giving you all those loyalty benefits they prevent you from using a different airline. This also benefits the credit card company: When you own multiple credit cards but only get the mentioned benefits when you use one of ...


8

Because you made a personal guarantee, both of you and the corporation are jointly and severally responsible for 100% of the loan. That means the bank will dun both of you. If he refuses to pay any, you must pay it all. If he pays 30% and then declares personal bankruptcy, and the company pays 10% of part of its chapter 11 reorganization, you pay the ...


7

From a company (airline/hotel/retailer) perspective, here are some advantages: Branding - Having a cobranded card is a branding exercise. If the rewards program is good and the issued cards are frequently used, the business can keep itself on top of mind, both with the customer using the card and perhaps at the point of sale. Customer Retention - As @...


7

There are many options when it comes to choosing a registered office address. I personally used one of the many companies that offer a "Registered office Service" so that I had a Central London address for my company and then paid to have any mail forwarded to me. Type "registered office services uk" in google search and you will see a list of the many ...


7

I'm going to avoid going too deep into the technical on this. In short, Canada's tax system is set up under the theory of 'integration', which means that an individual should have no tax benefit, and no tax penalty, whether or not their income is earned through a corporation, or whether it is earned directly by the person. In order to enact this ...


7

To put this in perspective: you can certainly set up a corporation and then pass legitimate business expenses related to the operation of that corporation through it in the manner you're describing. Or take whatever other steps are needed in your specific jurisdiction in order to take advantage of tax breaks for legitimate business expenses. In a sense, that ...


6

There is no such thing as a correct value. There are different ways to calculate (read: guess) an anticipated value, but neither of them is the "correct" one. Last not least this depends on your interpretation of the term "correct" in that context. Book value / value of oustanding shares Discounted (future) cash flow Value (which one?) of tangible and ...


6

Directors can be held responsible for the liabilities of the corporation - see this Wikipedia article - and especially if it was clear that was the reason for the arrangement, you might well find this happening. That said, I know a Canadian who sold his house to a corporation he already owned (he was doing consulting work through it) at the (in his opinion ...


6

There is no simple rule like "you can/can't spend more/less than $X per person." Instead there is a reasonableness test. There is such a thing as an audit of just your travel and entertainment expenses - I know because I've had one for my Ontario corporation. I've deducted company Christmas parties, and going-away dinners for departing employees, without ...


5

The forms get updated every year, and the software providers need to get approved by the IRS every year. "Form is not yet finalized" means that this year form hasn't been approved yet. IRS starts accepting returns on January 31st anyway, nothing to be worried about. Why are you nearing a deadline? The deadline for 1120 (corporate tax return) is 2 and 1/2 ...


5

Firstly, the cost of getting to or from your normal place of work is NOT a deductible expense in Ontario. Unless you can show that you use that transit pass for travelling to work OTHER THAN to and from your normal place of work, you can't claim it. Who deducts the cost of travel in other circumstances depends on who pays it. If the corporation pays, the ...


5

I think much of that info is hidden behind pay-walls. Here is one site I've found. http://www.feinsearch.com/ Another that is for non-profits only is guidestar. http://www.guidestar.org/rxg/products/nonprofit-data-solutions/product-information/guidestar-premium/advanced-nonprofit-search.aspx


5

Your tax rate is 20% for turnover below £300000. So deducting your expenses and all the tax your accountant thinks you need to pay is £450. But you can claim relief on your tax payments. Visit the UK gov website to check your options under which you can claim relief. Frankly speaking for such a low turnover you shouldn't have opened a limited company. Or do ...


5

According to an article on Bankrate.com from 2011, yes, it can hurt your credit: With individual liability accounts, the employee holds all responsibility for the charges, even if the company pays the issuer directly. Joint liability means the company and employee share the responsibility for payments, says Mahendra Gupta, author of the RPMG survey. In both ...


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