The Share Market

[Frodo]

Originally posted by Dan26
Actually the family owns more like 90% of the shares, Frodo.

Then they don't need to pay a dividend at all!!!

They can take all the profis as salary or put them into a trust fund, super etc and leave you with a worthless investment.

As Lenny and Carl said

preferably through personal contacts that you truly can trust, and where the opportunity is so good that you can justify going all out.

 

[Mong]

I bought some ABC Learning Centre shares a couple of years ago.

They have been doing very very well although they have plateaued a bit of late.

 

[Former]

A bit of a hatchet job on ABC and Peppercorn on one of the current affairs shows last night. Left the viewer with the feeling the two companies cared more about money than the children in their care... the share price should jump a little

 

[Former]

Originally posted by Frodo
Then they don't need to pay a dividend at all!!!

They can take all the profis as salary or put them into a trust fund, super etc and leave you with a worthless investment.

Would you have any legal redress there Frodo? Or would you need your insider to grab some incriminating evidence of hanky panky? (I believe "hanky panky" is the official term used in legal and business circles.)

 

[Frodo]

Originally posted by Groves
Would you have any legal redress there Frodo? Or would you need your insider to grab some incriminating evidence of hanky panky? (I believe "hanky panky" is the official term used in legal and business circles.)

No, it's quite legal. What's more share dilution is quite possible. Say the Company has 90 shares of $1 nominal value (paid up)and you have 10. So you get 10% of any dividend. But A vote can be held to issue another 900 shares at a cost of $1 each to the family or whoever, thus putting $900 capital into the company but diluting your dividend to 1%.
I have done this a few times for family reasons ie My wife and I own less and my sons more.